Algebra with Finance Final Bell Ringer 1

Front

What is the formula to calculate the total payment on a loan?

Back

Total Payment = Principal + Interest, where Interest = Principal x Rate x Time.

Front

Define APR (Annual Percentage Rate).

Back

APR is the annual rate charged for borrowing or earned through an investment, expressed as a percentage.

Front

How do you calculate monthly payments on a loan?

Back

Monthly Payment = [Principal x (Rate/12)] / [1 - (1 + Rate/12)^(-Number of Payments)]

Front

What is the average daily balance method for credit cards?

Back

The average daily balance is calculated by adding up the daily balances for each day in the billing cycle and dividing by the number of days in the cycle.

Front

What is the formula for calculating interest on a loan?

Back

Interest = Principal x Rate x Time.

Front

If a loan has a principal of $8,000, an APR of 2.75%, and a term of 5 years, what is the total payment?

Back

Total Payment = $8,571.60.

Front

What is the cost of each extra line in an advertisement if the cost is $5.25 per line?

Back

Each extra line costs $5.25.

Front

How do you find the monthly payment for a loan of $15,000 at an annual interest rate of 5% for 3 years?

Back

Monthly Payment = $449.56.

Front

What is the significance of the APR in loan agreements?

Back

APR represents the total cost of borrowing, including interest and fees, expressed as a yearly rate.

Front

How do you calculate the average daily balance for a credit card with varying daily balances?

Back

Average Daily Balance = (Sum of Daily Balances) / (Number of Days in Billing Cycle).