Auto Loans

Angela financed $34,000 to purchase a car. She is creating an amortization table to record her monthly balance. Angela’s loan information and part of her amortization table are shown.

Loan Information:

Interest Rate - 4.3%

Loan Amount - $34,000

Months - 60

Years - 5

What amount is closest to the interest Angela will pay for Month 2?

• $121.83

• $120.01

• $1340.18

• $1067.00

Paul financed $28,695 to purchase a car. He is creating an amortization table to record his monthly balance. Paul’s loan information and part of his amortization table are shown.

Loan Information:

Interest Rate - 3.9%

Loan Amount - $28,695

Months - 60

Years - 5

What amount is closest to the interest Paul will pay for Month 2?

• $814.54

• $1025.01

• $91.85

• $93.26

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CCSS.7.RP.A.3

Annamarie starts her new job across town in a few days and needs a car. She has investigated purchasing a car that is about 2-years old and has found one she likes priced at $18,450. She qualifies for an annual interest rate of 3.4% on a 60 month loan. Annamarie has found that her monthly payment will be $334.81.

The amortization table for the first 12 months of her loan was created using technology.

What is the total interest to be paid in the first year and what will be the principal balance at the beginning of the second year of the loan?

• Interest: $573.97 Principal: $15,006.22

• Interest: $573.97 Principal: $15,297.69

• Interest: $468.34 Principal: $15,486.23

• Interest: $472.19 Principal: $18,167.46

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Pedro starts his new job across town in a few days and needs a car. He has investigated purchasing a car that is about 2-years old and has found one he likes priced at $22,395. He qualifies for an annual interest rate of 4.1% on a 60 month loan. Pedro has found that his monthly payment will be $413.45.

The amortization table for the first 12 months of his loan was created using technology.

What is the total interest to be paid in the first year and what will be the principal balance at the beginning of the second year of the loan?

• Interest: $742.21 Principal: $21, 719.98

• Interest: $742.21 Principal: $18,973.39

• Interest: $841.35 Principal: $22,068.07

• Interest: $841.35 Principal: $18,274.95

Tags

CCSS.HSF.BF.A.2

Marcos buys a new truck for $46,877. He puts $3500 down and qualifies for a 3.785% interest rate for a 60 month loan. What will his monthly payment be?

• $858.77

• $794.65

• $924.38

• $860.26