Loans

Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan.

• Tax Deduction

• Annual Fee

• Annual Percentage Rate (APR)

• Introductory Rate

• Loan Term

Jr obtained a single payment loan of 4000 and will repay the loan in 90 days at an interest rate of 12% exact interest. What is the maturity value?

• 4120.00

• 4118.36

• 4116.78

• 4118.67

Iva would like to buy a new guitar for $635.65. She made a 15% down payment. What is her down payment?

• $95.35

• $540.30

• $635.65

• $100.00

Iva would like to buy a new guitar for $635.65. She made a 15% down payment. How much did she finance?

• $95.35

• $540.30

• $635.65

• $100.00

The _______ is the portion of the cash price that is owed on an item after making the down payment. 

• down payment 

• amount financed 

• final payment 

• installment loan

The _____ _____ ______ is an index showing the cost of borrowing money on a yearly basis, expressed as a percent

• repayment schedule 

• single payment loan 

• annual percentage rate

• term 

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

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

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