FA 3-4 Loan Calculations

What is the monthly payment for a 10-year, $20,000 loan at 4.625% APR? What is the total

interest paid on this loan?

• $458.48; $7,896.24

• $986.78; $4,569.78

• $124.36; $5,127.36

• $208.48; $5,017.60

Max is taking out a 5.1% loan in order to purchase a $17,000 car. The length of the loan is five

years. How much will he pay in interest?

• $2295.40

• $2456.32

• $2278.32

• $2195.36

Merissa wants to borrow $12,000 to purchase a used boat. After looking at her monthly budget,

she realizes that all she can afford to pay per month is $250. The bank is offering a 6.1% loan.

What should the length of her loan be so that she can keep within her budget? Round to the

nearest year.

• 3 years

• 8 years

• 5 years

• 6 years

What is the total interest on a 15-year, 4.98% loan with a principal of $40,000?

• $12,569

• $18,456

• $16,862

• $12,986

Ansel wants to borrow $10,000 from the Hampton County Bank. They offered him a 6-year loan

with an APR of 6.35%. How much will he pay in interest over the life of the loan?

• $2,056.78

• $2,189.45

• $2,982.75

• $2,052.08

Tom and Kathy want to borrow $35,000 in order to build an addition to their home. Their bank

will lend them the money for 12 years at an interest rate of 5 3/8 %. How much will they pay in

interest to the bank over the life of the loan?

• $12,123.89

• $12,302.78

• $12,568.96

• $12,001.23

What is the loan amount?

• $87,000

• $76,000

• $73,000

• $45,000

What is the length of the loan?

• 15 years

• 10 years

• 13 years

• 17 years

What is the monthly payment?

• $6,896.32

• $6,456.32

• $6,860.76

• $6,970.23

What is the total interest over the loan’s life?

• $26,653.23

• $26,213.56

• $26,913.77

• $26,945.32