8.3 & 8.4 Simple interest & Allocation of monthly Repayment

The amount of each monthly payment depends on the --------------------------------, ------------------------, and ----------------------.

• amount financed

• the number of payments

• the annual percentage rate

• all of the above

A(n) ______ _______ is a loan repaid in equal payments over a specified period of time

• single payment loan 
• installment loan
• maturity value 
• ordinary interest 

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 

Tags

CCSS.7.RP.A.3

What is the formula to find the monthly payment of a simple interest of an installment loan?

• Monthly Payment = 
  
  Amount of Loan  $\div$  $200  x Monthly Payment for $100 Loan.

• Monthly Payment =
  
   Amount of Loan  $\div$  $300  x Monthly Payment for $100 Loan.

• Monthly Payment = 
  
  Amount of Loan  $\div$  $200  x Monthly Payment for $100 Loan.

• Monthly Payment =
  
   Amount of Loan  $\div$  $100  x Monthly Payment for $100 Loan.

Fixed interest rates mean:

• you will have the same interest rate for the life of the loan

• you will have a different interest rate for the life of the loan

Daniel and Unisha want to fix the windows in their house. The estimated cost for the job is $6,890. They pay 30% of the cost up front and finance the rest at 12% annual percentage rate for 48 months.

What is the down payment?

• $6,890

• $2,067

• $30

• $48

Daniel and Unisha want to fix the windows in their house. The estimated cost for the job is $6,890. They pay 30% of the cost up front and finance the rest at 12% annual percentage rate for 48 months.

What is the amount financed?

• $6,890

• $2,067

• $4,823

• $6,090

Daniel and Unisha want to fix the windows in their house. The estimated cost for the job is $6,890. They pay 30% of the cost up front and finance the rest at 12% annual percentage rate for 48 months.

What is the total amount repaid?

• $6,088.56

• $6,890.56

• $4,823

Daniel and Unisha want to fix the windows in their house. The estimated cost for the job is $6,890. They pay 30% of the cost up front and finance the rest at 12% annual percentage rate for 48 months.

What is the monthly payment?

• $216.84

• $106.84

• $126.84

Daniel and Unisha want to fix the windows in their house. The estimated cost for the job is $6,890. They pay 30% of the cost up front and finance the rest at 12% annual percentage rate for 48 months.

What is the finance charge?

• $4,823.56

• $1,265.56

• $6,088.56