Chapter 8 Review - Financial Math

Derek Boone purchased an automobile sound system for $850 and financed it at 12% ordinary interest for 90 days. How much interest did he pay?

• $25.50

• $27.80

• $38.60

• $102.30

Amrit Rashmisrisethi took out a single-payment loan for $1,200 at 8.3% exact interest. If the loan’s maturity value is $1,232.75, for how many days did Amrit take out the loan?

• 90 days

• 100 days

• 120 days

• 130 days

Robert Hernandez purchased fishing equipment for $438.50. He made a 15% down payment and financed the remainder. How much did he finance?

• $65.78

• $372.73

• $498.50

• $622.39

Barbara Morris purchased a dining room table and chairs for $2,305.60. She made a 35% down payment and financed the rest. How much was her down payment?

• $560.80

• $806.96

• $1,230.99

• $1,498.64

Terri Naujock is purchasing a new computer system for $1,430.86 with an installment loan that has an APR of 12%. The store financing requires a 15% down payment and 12 monthly payments. What is the finance charge? The monthly payment is $8.88 per $100.

• $17.89

• $79.77

• $84.26

• $214.63

Susan Castro obtained a loan of $1,450 for a new air conditioner for her home. The interest rate is 13% and the monthly payment is $129.51. What is the interest on the first monthly payment?

• $12.37

• $15.72

• $24.56

• $111.23

Janet Murphy took out a simple interest loan at 9.5% interest for 12 months. Her previous balance is $890. What is the final payment if the loan is paid off with the next payment?

• $892.37

• $895.43

• $897.05

• $987.50

Michael LeBlanc took out a simple interest loan at 12.8% interest for 6 months. His previous balance is $235.40. What is his final payment if the loan is paid off with the next payment?

• $237.91

• $321.90

• $365.09

• $368.71