Unit 6 APEX Review

Daryl took out a single payment loan for $890 that charged a $40 fee. How much does he have to pay by the time the loan reaches maturity?

• $930

• $890

• $850

• $40

Kimberly took out a payday loan for $1500 due in 4 weeks that charged a $135 fee. What is the periodic interest rate of the loan?

• 468%

• 117%

• 36%

• 9%

What is the APR of a payday loan for $1100 due in 5 days that charges a $165 fee?

• 10,950%

• 1,095%

• 109.5%

• 10.95%

Jimmie has the option of borrowing $840 for 1 week at an APR of 550% or borrowing the $840 for 1 week with a fee of $90. Which is the "better" deal?

• Borrowing the $840 for 1 week with a fee of $90, since Jimmie will owe more interest this way than with the 550% APR.

• Borrowing the $840 for 1 week with a fee of $90, since Jimmie will owe less interest this way than with the 550% APR

• Borrowing the $840 for 1 week at an APR of 550%, since Jimmie will owe more interest this way than with the fee of $90

• Borrowing the $840 for 1 week at an APR of 550%, since Jimmie will owe less interest this way than with the fee of $90

Jerry bought a table-tennis table with a sticker price of $1700. If he paid $22 a week for 2 years, what was the approximate markup rate on the table?

• 32.7%

• 34.6%

• 67.3%

• 74.3%

Today Charlie put a ring on layaway by making a down payment of $85 and agreeing to pay $18 per month, starting next month, for 21 months. When will Charlie receive the ring?

• In 21 months

• In 18 months

• In 1 month

• Today

Rhonda plans to buy an $85 Father's Day present for her father, and the holiday falls on the third Sunday of June. She can afford to put it on layaway with a 20% down payment and $8 a month after that. If payments are due at the beginning of each month, when should Rhonda make her first monthly payment?

• December 1

• November 1

• October 1

• September 1

Giovanni took out a loan for $3900 at 14% interest, compounded annually. If he makes yearly payments of $540, will he ever pay off the loan?

• Yes, because $540 is greater than the amount of interest he is charged per year

• Yes, because $540 is less than the amount of interest he is charged per year

• No, because $540 is greater than the amount of interest he is charged per year

• No, because $540 is less than the amount of interest he is charged per year

Blake took out a 20-year loan for $195,000 at 2.4% interest, compounded monthly. If his monthly payment on the loan is $1023.84, how much of his first payment went toward note reduction?

• $245.72

• $390.00

• $633.84

• $1,023.84

Cheyenne took out a 30-year loan for $350,000 at 2.9% interest, compounded monthly. If her monthly payment on the loan will remain $1456.80 for the life of the loan, how much will Cheyenne have paid in interest once the loan is paid off?

• $524,448.00

• $360,150.00

• $350,000.00

• $174,448.00