Quiz about 8.4 & 8.5 Review

Question 1

A repayment schedule shows the distribution of interest and other charges over the life of a loan. It usually does not show the principal.

Accepted Answer

False

Answer

True

Question 2

One reason you might want to make the final payment of your loan before the end of the term is so that you will pay less interest.

Accepted Answer

True

Answer

False

Question 3

Chico Alvarez obtained a loan of $2,400 to install a new roof on his home. The interest rate is 12% and the monthly payment is $113.04. What is the interest on the first monthly payment?

Accepted Answer

$24.00

Answer

$25.04

Answer

$29.90

Answer

$32.01

Question 4

Camryn Mason obtained a $1,200 loan for her scuba diving lessons. She borrowed the money for 6 months at 7% interest. Her monthly payment is $204.10. What is the interest for the second payment?

Accepted Answer

$5.85

Answer

$3.53

Answer

$4.69

Answer

$7.00

Question 5

Camryn Mason obtained a $1,200 loan for her scuba diving lessons. She borrowed the money for 6 months at 7% interest. Her monthly payment is $204.10. What is the balance of her loan after three payments?

Accepted Answer

$605.24

Answer

$199.41

Answer

$404.67

Answer

$804.65

Question 6

Brad Clark took out a simple interest loan at 13% interest for 12 months. His previous balance is $619. What is the final payment if the loan is paid off with the next payment?

Accepted Answer

$625.71

Answer

$621.00

Answer

$634.00

Answer

$675.09

Question 7

Marc Maxwell took out a simple interest loan at 13% interest for 12 months. His previous balance is $2,681.04. What is the final payment if the loan is paid off with the next payment?

Accepted Answer

$2,710.08

Answer

$2,801.01

Answer

$2,876.91

Answer

$2,998.01

Question 8

Chloe Closson paid for her vacation to the mountains with a $3,000 installment loan at 10% for 12 months. Her monthly payments were $263.75. After 5 payments, the balance due was $1,786.20. If Chloe pays off the loan with the sixth payment, how much will she save?

Accepted Answer

$45.17

Answer

$135.67

Answer

$213.85

Answer

$308.95

Question 9

Dan Williams took out a simple interest loan at 14.5% interest for 12 months. His previous balance is $119.42. What is the final payment if the loan is paid off with the next payment?

Accepted Answer

$120.86

Answer

$98.74

Answer

$132.90

Answer

$151.23

Question 10

Roper Fox took out a simple interest loan at 5% interest for 12 months. His previous balance is $200. What is his final payment if the loan is paid off with the next payment?

Accepted Answer

$200.83

Answer

$200.31

Answer

$200.56

Answer

$200.72

Question 11

Diane and Wayne Scott obtained a $4,000 loan to purchase a tractor at 8% for 12 months. The monthly payment is $348.00. What is the new principal after they make the first payment?

Accepted Answer

$3,678.67

Answer

$3,652.00

Answer

$3,628.64

Answer

$321.33

Question 12

Bernice Delgado obtained a $7,000 loan to purchase an outdoor building at 9% for 24 months. The monthly payment is $319.90. What is the new principal after they make the first payment?

Accepted Answer

$6,732.60

Answer

$6,678.12

Answer

$6,680.10

Answer

$6,973.75

Question 13

Luke Benedictine obtained a $5,000.00 loan to update his office at 8% for 24 months. The monthly payment is $226.00. The balance of the loan after 16 payments is $1,758.30. What is the interest for the 17th payment?

Accepted Answer

$11.72

Answer

$10.49

Answer

$33.33

Answer

$214.28

Question 14

Maria Thompson paid for a shipment of action figures with a $4,000 installment loan at 10% for 24 months. Her monthly payments are $184.40. After 6 payments, the balance is $3,074.51. She pays off the loan when the next payment is due. What is the final payment?

Accepted Answer

$3,100.13

Answer

$3,048.89

Answer

$3,074.51

Answer

$3,110.13

Question 15

Walter Lane took out a simple interest loan of $3,000 at 10% interest for 18 months. After four payments the balance is $2,530.20. He pays off the loan when the next payment is due. What is the interest?

Accepted Answer

$21.09

Answer

$14.06

Answer

$140.57

Answer

$253.02

Question 16

Stan Hardwick paid for tuition at a local college with an installment loan of $3,000 at 8% for 12 months with a $261 monthly payment. After 6 payments the balance was $1,529.68. He paid off the loan with the next payment. What is the amount of savings by paying the loan off early?

Accepted Answer

$26.12

Answer

$10.20

Answer

$31.18

Answer

$1,470.32

8.4 & 8.5 Review

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