Loans & Interest

Calculate the interest earned on a $4,500 savings account that earns 2.5% simple interest over three years.

• $338.00
• $33.80
• $33.75
• $337.50

Determine the simple interest earned:  p= $2000  r= 4.6%  t= 4 years

• $2370.00
• $348.00
• $2368.00
• $368.00

One reason you might want to make the final payment of your loan before the end of the term is so that you will pay less interest.

• True

• False

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

• True

• False

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 amount you owe as the cost of borrowing money

• Principle

• Terms

• Loan

• Interest

An agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest

• Principal

• Loan

• Interest

• Contract

Original amount of money borrowed, separate from interest or fees

• Principal

• Secured debt

• Unsecured debt

• Interest

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

Dan Williams took out a simple interest loan at 14.5% interest for 12 months. His previous balance is $119.42. What is the final payment if the loan is paid off with the next payment?

• $98.74

• $120.86

• $132.90

• $151.23