Chapter 3 Test Review

Suppose that your credit card calculates your payment using an APR of 24%. How much more will you pay if you charge your credit card $150 and you pay it off at the end of the first month than paying $150 cash?

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Steven has a balance of $10,250 in his credit card. He negotiates with his bank to pay it off in 2 years with an APR of 1.65%. If he pays the same amount each month, what is his monthly payment?

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Ryan has a balance of $799 on his credit card. The bank agrees on a 10% down payment and the rest in 12 monthly payments. How much will Ryan pay each month?

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Breylin plans to pay her credit card during the month of October like this: She will pay $15 per day and one extra payment at the end of the month. The expression m + 15n represents the total amount of money she will have paid by the end of the month. What does m represent in the expression?

• New balance at the end of October.

• Number of daily payments.

• Daily interest rate.

• One-time payment.

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CCSS.HSA.SSE.A.1

Jack was approved for a 4-year private student loan at 4.2% to cover his college costs of $11,000. What is his monthly payment?

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Jack was approved for a 4-year private student loan at 4.2% to cover her college costs of $11,000. What is the total amount he will pay back?

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Your neighbor took out a 60-day payday loan from Miller's Loans. They borrowed $675 and is being charged $125 interest. What is the APR for this loan? Round to the nearest hundredth of a percent.

Christy wants to buy a car and is applying for a loan. Her credit score is 750, which is considered excellent. How much will her credit score most likely influence her buying power?

• She will receive a higher interest rate on her loan, making the car more expensive.

• She will receive a lower interest rate on her loan, making the car more affordable.

• Her credit score won't affect her loan, but it will determine the type of car she can buy.

• She will be required to pay the full price of the car upfront due to her credit score.

Sam is purchasing a new TV for $1,200. He is offered a one-time warranty for $150 that will cover any repairs or replacements for two years. Without the warranty, repairs for the TV cost $400. Assuming he might need one repair during the two years, what is the benefit of adding the warranty.

• Sam will save $400 by purchasing the warranty.

• Sam will spend an additional $150 with the warranty but avoid a potential $400 repair cost.

• Sam will save $250 by purchasing the warranty.

• Sam will not benefit from the warranty because the repair cost is lower than the warranty cost.

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