7.1-7.3 Check for Understanding

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

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

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%

The down payment is the final payment you make when you are done paying off your loan.

• True

• False

The formula to determine the amount finances is the cash price minus the down payment.

• True

• False

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

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