Fin Lit Chapter 4 Review for Test

The cost of a car is $25,000 and there is a 15% down payment. What is the down payment amount?

• $375,000

• $2,500

• $3,750

Casey wants to purchase a car costing $14,590. He will finance the car with an installment loan from the bank but would like to finance no more that $10,000. What percent of the total cost of the car should his down payment be?

• 31.5%

• 25.5%

• $65%

• $35%

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

Determine the monthly payment:

If Sammi finances a car for $1200 at 6% APR with 12 payments per year for 5 years.

You do not need to include the dollar sign in your answer.

Anthony borrowed $26,000 for a car for 5 years at an APR of 5.25%. What will his monthly payment be?

• $6,761.94

• $6,761.95

• $1,417.62

• $1,417.63

Alexander wants to buy a $485,000 house that has a 4% interest rate, and the term is 30 years. What is his monthly payment?

• $229.16

• $2,315.46

• $16,166.79

• $17,015.38

Using the table, Tulio purchased a treadmill with an installment loan that has an APR of 12%. The treadmill sells for $1,672. The store financing requires a 10% down payment and 12 monthly payments. What is the finance charge?

• $89.00

• $92.50

• $98.76

• $99.50

Use the Calculator to solve the following problem.

I want an installment loan of $8,000 to remodel my house. What would be the better deal to agree to and how much would I save?

Choice A: 36 months at 12% APR

Choice B: 48 months at 10% APR

• A; 265.71

• B; 202.90

• A; 173.64

• B; 62.81

A house costs $350,000. Carlos wants to get a mortgage that has a 3.5% interest rate, and the term is 30 years. What is his total interest?

• $144,202.40

• $535,797.60

• $215,797.60

• $302,850.20