8.1 & 8.2 Single-Payment Loans & Installment Loans

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

Jessie obtained a single-payment loan of $3,225 to pay a 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 his loan?

• $3,257.18

• $42.16

• $4,267.16

• $32.63

Vanessa borrowed $21,000 for new lawn care equipment for her design business. The bank granted her a single-payment loan of $21,000 for 144 days at an ordinary interest rate of 9%. What is the maturity value of his loan?

• $21,262.50

• $21,745.64

• $745.64

• $21,000

Suppose your bank has a minimum loan charge of $48 when you borrow at 6% ordinary interest for 90 days. What principal borrowed will result in a $48 interest charge?

• $3,200

• $3,000

• $320

• $48

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

Gibson purchased computer equipment for $4,020. He used the store's credit plan. He made a 20% down payment. What amount did he finance?

• $3,216

• $804

• $4,000

• $4,824

Casey wants to purchase a car costing $14,590. He will finance the car with an installment loan from the bank but would like to finance no more that $10,000. What percent of the total cost of the car should his down payment be?

• 31.5%

• 25.5%

• $65%

• $35%

The Martin's want to remodel their kitchen. They would like to finance part of the cost but do not want the amount financed to be more that $9,000. The total cost of remodeling the kitchen is $12,000. What percent of the total cost should their down payment be?

• 25%

• 20%

• 30%

• 27%