Question 1

Solve the problem. Use the Annual Percentage Rate Table if necessary.
-Find the APR to the nearest half percent, for the following data.

Accepted Answer

The answer of Solve the problem. Use the Annual Percentage...

Question 2

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity.
-Amount Financed: $4500 Regular Monthly Payment: $184.50
Total Number of Payments scheduled: 36
Loan repaid in full instead of making: 18th payment

Accepted Answer

The answer of Use the Rule of 78 to find...

Question 3

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity.
-Finance charge: $315 Total number of payments: 23
Remaining number of payments, when paid in full: 4

Accepted Answer

The Rule of 78 is used to calculate the unearned interest on a loan paid off early. It allocates more interest to the earlier payments. The formula is: (Remaining payments * (Remaining payments + 1) / (Total payments * (Total payments + 1))) * Total finance charge. Plugging in the values: (4 * 5 / 23 * 24) * 315 = $11.41.

Question 4

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity.
-Amount Financed: $12,250 Regular Monthly Payment: $232.75
Total Number of Payments scheduled: 60
Loan repaid in full instead of making: 36th payment

Accepted Answer

The Rule of 78 is used to calculate the amount of unearned interest when a loan is paid off early. It involves summing the digits of the months in the loan term to allocate interest. For a 60-month loan, the sum of the digits is 1830. The unearned interest is calculated based on the remaining months (24) and their sum (300). The unearned interest is then a proportion of the total interest, which is calculated using the monthly payment and the total number of payments.

Question 5

A homeowner installed a new swimming pool for $4000. He paid 8% down and then paid 36 monthly payments of $115.32. Determine the APR of the loan to the nearest one-half of a percent.

Accepted Answer

The answer of A homeowner installed a new swimming pool...

Question 6

A college student purchased a used car for $4000. He paid 15% down and then paid 18 monthly payments of $206.55. Determine the APR of the loan to the nearest one-half of a percent.

Accepted Answer

The student paid $600 down (15% of $4000), leaving $3400 to be financed. The total of the monthly payments is $3717.90 (18 x $206.55). The finance charge is $317.90 ($3717.90 - $3400). Using the formula for APR, the APR is approximately 11.5%.

Question 7

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity.
-Finance charge: $6385 Total number of payments: 50
Remaining number of payments, when paid in full: 11

Accepted Answer

The answer of Use the Rule of 78 to find...

Question 8

Solve the problem. Use the Annual Percentage Rate Table if necessary.
-Find the APR to the nearest half percent, for the following data.

Accepted Answer

The answer of Solve the problem. Use the Annual Percentage...

Question 9

A newlywed couple bought a washer and dryer for $800. They paid 10% down and then paid 12 monthly payments of $63.97. Determine the APR of the loan to the nearest one-half of a percent.

Accepted Answer

The answer of A newlywed couple bought a washer and...

Question 10

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity.
-Finance charge: $788 Total number of payments: 22
Remaining number of payments, when paid in full: 7

Accepted Answer

The answer of Use the Rule of 78 to find...

Question 11

Solve the problem.
-An item is purchased for $5200 with a down payment of $1000. There is a finance charge of $1100. Find the monthly payment if 36 payments are made.

Accepted Answer

The total amount financed is $5200 - $1000 + $1100 = $5300. Dividing this by 36 payments gives $5300 / 36 = $147.22 per month.

Question 12

Use the Rule of 78 to find the payoff amount for the loan paid in full before the date of maturity.
-Finance charge: $340 Total number of payments: 26
Amount per payment: $186
Remaining number of payments, when paid in full: 3

Accepted Answer

The Rule of 78 is used to calculate the interest rebate on a loan paid off early. The sum of the digits for 26 payments is 351. The remaining interest for 3 payments is calculated as (3+2+1)/351 * $340 = $5.81. Subtract this from the total finance charge to get the rebate. The payoff amount is the remaining principal plus the rebate, which is $186 * 3 + $5.81 = $738.19.

Question 13

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity.
-Amount Financed: $6500 Regular Monthly Payment: $201.50
Total Number of Payments scheduled: 48
Loan repaid in full instead of making: 24th payment

Accepted Answer

The answer of Use the Rule of 78 to find...

Question 14

Solve the problem.
-An item is purchased for $2000 with a down payment of $500. There is a finance charge of $100. Find the monthly payment if 24 payments are made.

Accepted Answer

The answer of Solve the problem.
-An item is purchased for...

Question 15

Solve the problem. Use the Annual Percentage Rate Table if necessary.
-Find the APR to the nearest half percent, for the following data.

Accepted Answer

The answer of Solve the problem. Use the Annual Percentage...

Question 16

Solve the problem.
-An item is purchased for $10,000 with a down payment of $3000. There is a finance charge of $2000. Find the monthly payment if 60 payments are made.

Accepted Answer

The total amount to be financed is $10,000 - $3,000 + $2,000 = $9,000. Dividing $9,000 by 60 payments gives a monthly payment of $150.00.

Question 17

Solve the problem. Use the Annual Percentage Rate Table if necessary.
-Find the APR to the nearest half percent, for the following data.

Accepted Answer

The answer of Solve the problem. Use the Annual Percentage...

Question 18

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity.
-Finance charge: $24,359 Total number of payments: 38
Remaining number of payments, when paid in full: 5

Accepted Answer

The answer of Use the Rule of 78 to find...

Question 19

Solve the problem.
-An item is purchased for $800 with a down payment of $50. There is a finance charge of $30. Find the monthly payment if 10 payments are made.

Accepted Answer

The total amount to be financed is $800 - $50 + $30 = $780. Dividing $780 by 10 payments gives a monthly payment of $78.

Question 20

Solve the problem.
-An item is purchased for $2500 with a down payment of $500. There is a finance charge of $150. Find the monthly payment if 20 payments are made.

Accepted Answer

The remaining balance after the down payment is $2500 - $500 = $2000. Adding the finance charge of $150 gives a total of $2150 to be paid over 20 payments. The monthly payment is $2150 / 20 = $107.50.

Quiz 13: Personal Financial Management

Solve the problem. Use the Annual Percentage Rate Table if necessary. -Find the APR to the nearest half percent, for the following data.

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity. -Amount Financed: $4500 Regular Monthly Payment: $184.50 Total Number of Payments scheduled: 36 Loan repaid in full instead of making: 18th payment

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity. -Finance charge: $315 Total number of payments: 23 Remaining number of payments, when paid in full: 4

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity. -Amount Financed: $12,250 Regular Monthly Payment: $232.75 Total Number of Payments scheduled: 60 Loan repaid in full instead of making: 36th payment

A homeowner installed a new swimming pool for $4000. He paid 8% down and then paid 36 monthly payments of $115.32. Determine the APR of the loan to the nearest one-half of a percent.

A college student purchased a used car for $4000. He paid 15% down and then paid 18 monthly payments of $206.55. Determine the APR of the loan to the nearest one-half of a percent.

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity. -Finance charge: $6385 Total number of payments: 50 Remaining number of payments, when paid in full: 11

Solve the problem. Use the Annual Percentage Rate Table if necessary. -Find the APR to the nearest half percent, for the following data.

A newlywed couple bought a washer and dryer for $800. They paid 10% down and then paid 12 monthly payments of $63.97. Determine the APR of the loan to the nearest one-half of a percent.

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity. -Finance charge: $788 Total number of payments: 22 Remaining number of payments, when paid in full: 7

Solve the problem. -An item is purchased for $5200 with a down payment of $1000. There is a finance charge of $1100. Find the monthly payment if 36 payments are made.

Use the Rule of 78 to find the payoff amount for the loan paid in full before the date of maturity. -Finance charge: $340 Total number of payments: 26 Amount per payment: $186 Remaining number of payments, when paid in full: 3

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity. -Amount Financed: $6500 Regular Monthly Payment: $201.50 Total Number of Payments scheduled: 48 Loan repaid in full instead of making: 24th payment

Solve the problem. -An item is purchased for $2000 with a down payment of $500. There is a finance charge of $100. Find the monthly payment if 24 payments are made.

Solve the problem. Use the Annual Percentage Rate Table if necessary. -Find the APR to the nearest half percent, for the following data.

Solve the problem. -An item is purchased for $10,000 with a down payment of $3000. There is a finance charge of $2000. Find the monthly payment if 60 payments are made.

Solve the problem. Use the Annual Percentage Rate Table if necessary. -Find the APR to the nearest half percent, for the following data.

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity. -Finance charge: $24,359 Total number of payments: 38 Remaining number of payments, when paid in full: 5

Solve the problem. -An item is purchased for $800 with a down payment of $50. There is a finance charge of $30. Find the monthly payment if 10 payments are made.

Solve the problem. -An item is purchased for $2500 with a down payment of $500. There is a finance charge of $150. Find the monthly payment if 20 payments are made.