apps 2 8-1 - 8-2 review

Single-payment loan is

• A loan you repay with one payment after a specified period of time.

• A written promise to pay a certain sum of money on a specific date in the future.

• The total amount you must repay for a loan.

• A loan you repay over a period of time.

Maturity Value is

• A loan you repay with one payment after a specified period of time.

• A written promise to pay a certain sum of money on a specific date in the future.

• The total amount you must repay for a loan.

• A loan you repay over a period of time.

Ordinary Interest

• interest calculated based on a 360-day year

• interest calculated based on a 365-day year

Exact Interest

• interest calculated based on a 360-day year

• interest calculated based on a 365-day year

Anita’s bank granted her a single-payment loan of $5,200 for 60 days to pay for her new merchandise for her candle shop. Determine the interest of the loan if the rate is 7.5% ordinary interest

• $65

• $5265

• $64.11

• $5264.11

Parker purchased a new surfboard that cost $500 and financed it for 100 days . Determine the maturity value of the loan if the rate is 8.25% exact interest.

• $11.30

• $511.30

• $11.46

• $511.46

Hector added a room to his house costing $9850 and financed it for 180 days. Determine the maturity value of the loan if the rate is 7.7% ordinary interest

• $10224.03

• $10229.23

• $374.03

• $379.23

Ruth wants to borrow $21,600 for 120 days to pay her real estate tax. First Savings and Loan charges 7.25% ordinary interest while Wells Bank charges 7.5% exact interest. Which bank should she choose to save on interest?

• First Savings

• Wells Bank

• They would cost the same

If you're buying a car for $19,600 and are required to pay 15% down payment, what will that be?

• $2940

• $294,000

• $5,400

• $38,268

Tiffany has decided to purchase an $11,000 car. She pans on putting 30% down toward the purchase, and financing the rest at 5.8% interest rate for 4 years. Find her down payment.

• $3,300.00

• $3,000.00

• $330.00

• $3,300.81