Loans

The formula to determine the amount finances is the cash price minus the down payment.

• True

• False

The down payment is the final payment you make when you are done paying off your loan.

• True

• False

A repayment schedule shows the distribution of interest and other charges over the life of a loan. It usually does not show the principal.

• True

• False

One reason you might want to make the final payment of your loan before the end of the term is so that you will pay less interest.

• True

• False

Gene's bank granted him a singe-payment loan of $5,000 for 90 days at 9% ordinary interest. What is the amount of ordinary interest owned?

• $112.50

• $150.00

• $132.50

• $156.20

Scott's bank granted him a single-payment loan of $3,250 to repair bill. HE agreed to repay the loan in 31 days at an exact interest rate of 11.75%. What is the maturity value of the loan?

• $3,211.09

• $3,282.43

• $3300.90

• $3,554.66

Sarah is buying a new couch for $989. She made a down payment of $200 and financed the remainder. What amount did she finance?

• $766

• $789

• $799

• $877

Rebecca purchased a new flat screen television for $767. She made a 20% down payment and financed the remainder. What amount did she finance?

• $613.60

• $617.50

• $665.00

• $767

Using this table above, Corey obtained an installment loan of $1,000. The annual percentage rate is 8%. He must repay the loan in 18 months. What is the fiance charge?

• $59.10

• $63.80

• $75.10

• $78.20

Using the table, Tulio purchased a treadmill with an installment loan that has an APR of 12%. The treadmill sells for $1,672. The store financing requires a 10% down payment and 12 monthly payments. What is the finance charge?

• $89.00

• $92.50

• $98.76

• $99.50