4.1-4.3 Quiz Review

Jane buys a $1,050 computer on a deferred payment plan. Jane does not make a down payment. There is no interest for 1 year as long as the minimum payment of $50 is paid. If Jane makes the minimum payments, how much must she pay in the last month to avoid interest fees?

Gene wants to buy a guitar. The total cost is $950. If he can save $45 each month, how long will it take for Gene to save up for the guitar?

Monique purchases a $5,100 dining room set. She can’t afford to pay cash, so she uses the installment plan, which requires an 18% down payment. How much is the down payment?

Carey bought a $2,100 computer system on the installment plan. He made a $400 down payment, and he has to make monthly payments of $79.50 for the next two years. How much interest will he pay?

What is the total amount of the monthly payments for a $6,100, two-year loan with an APR of 8.75%? Round to the nearest dollar.

Cecilia bought a new car. The total amount she needs to borrow is $29,541. She plans to take out a 4-year loan at an APR of 6.3%. What is the monthly payment? Round to the nearest dollar.

What is the finance charge for a $7,000, two-year loan with a 6.75% APR? Round to the nearest dollar.

Nicole is taking out a loan for college for $50,000. It is a 15 year loan with an APR of 6.35%. What will her monthly payment be?

Kevin and Julie want to borrow $30,000 to buy a car. They went over their budget and they can afford to pay $500 a month. If the bank offers them an auto loan with an APR of 5.9%, what should the length of the loan be so they can afford the monthly payment? Round to the nearest year.

Taylor needs to borrow $10,000 from her credit union. If the APR is 6.0% and she can afford $200, how long will the loan be? Round to the nearest year.