Applied Math Chapter 8 Flashcard

Front

What is the formula to calculate the amount financed after a down payment?

Back

Amount Financed = Total Cost - Down Payment

Front

If Jenna Cox bought a home gym for $1,299.50 and made a 15% down payment, how much did she finance?

Back

$1,104.58

Front

What is the formula for calculating the maturity value of a single-payment loan?

Back

Maturity Value = Principal + Interest

Front

How do you calculate ordinary interest for a loan?

Back

Ordinary Interest = Principal x Rate x Time (in years) where Time is calculated as days/360.

Front

What is the maturity value of a loan of $4,300 for 120 days at 14% ordinary interest?

Back

$4,500.67

Front

What is the formula to calculate interest on a loan?

Back

Interest = Principal x Rate x Time (in years) where Time is calculated as days/360.

Front

If Kim-Ly Vanh’s bank granted her a loan of $2,580 for 90 days at 12% ordinary interest, what is the amount of interest?

Back

$77.40

Front

What is the maturity value of a single-payment loan of $650 given for 80 days at 15% exact interest?

Back

$671.37

Front

How do you convert days into years for interest calculations?

Back

Convert days to years by dividing the number of days by 360.

Front

What is the interest earned on $7,300 at 10% for 90 days?

Back

$180