Chapter 6 Review: The Nature of Borrowing Money

Which of the following is an example of a place where money can be borrowed from? (select all that apply)

• Banks

• Credit Unions

• Payday Lenders

• Pawn Shop

• Cash Advance on Credit Card

Phil borrowed $12 000 from a lender to buy a car. His monthly payments are $387.21 and he has 36 payments. What is the total amount repaid?

• $12 000

• $13 939.65

• $1 939.65

• $387.21

Phil borrowed $12 000 from a lender to buy a car. His monthly payments are $387.21 and he has 36 payments. What is the total interest paid?

• $12 000

• $13 939.65

• $1 939.65

• $387.21

Elias borrowed $5000 from a lender to buy a tractor. His monthly payments are $114.13 and he has 48 payments. What is the total amount repaid?

• $5000

• $5478.24

• $478.24

• $114.13

Elias borrowed $5000 from a lender to buy a tractor. His monthly payments are $114.13 and he has 48 payments. What is the total interest paid?

• $5000

• $5478.24

• $478.24

• $114.13

Zara borrowed $10 000 from a lender to start a small business. Her monthly payments are $657.32 and the total amount repaid is $39 439.20. What is the total interest paid for the loan?

• $657.32

• $10 000

• $29 439.20

• $39 439.20

Zara borrowed $10 000 from a lender to start a small business. Her monthly payments are $657.32 and the total amount repaid is $39 439.20. How many payments does she make?

• 12

• 36

• 48

• 60

You decided to cash your $550 paycheck at a payday lender. They charge 2.9% of your check as well as a $19.99 fee. How much money would you be left with from that $550 paycheck?

• $550

• $514.06

• $19.99

• $259

Sven borrows $2000 at 8% compounded monthly for 2 years. Using an online TVM solver, determine the total amount that must be repaid.

(a)  

Sven borrows $2000 at 8% compounded monthly for 2 years. He pays back a total of $2345.78. Determine his monthly payment.

• $2000

• $97.74

• $50.50

• $305.47