Unit 2 Study Guide

What is the monthly periodic rate on a loan with an APR of 19.5%?

• 1.625%

• 1.95%

• 0.1625%

• 19.5%

On his May credit card statement, Ryan had an average daily balance of $415.22. The bill showed that his APR was 21.6% and his finance charge was $89.69. When he verified the finance charge, did he find it was correct or incorrect?

• Correct

• Incorrect

• Not enough information

• Partially correct

Blair had these daily balances on her credit card for his last billing period. He did not pay the card in full the previous month, so he will have to pay a finance charge. The APR is 18.6%. 2 days @ $331.98, 11 days @ $1,203.04, 4 days @ $996.71, 13 days @ $1,002.76. What was the average daily balance?

Blair had these daily balances on her credit card for his last billing period. He did not pay the card in full the previous month, so he will have to pay a finance charge. The APR is 18.6%. 2 days @ $331.98, 11 days @ $1,203.04, 4 days @ $996.71, 13 days @ $1,002.76.

What is the finance charge for Blair's credit card balance?

• $15.67

• $18.67

• $16.87

• $17.67

Examine the summary section of the monthly credit card statement. What is the new balance?

• $421.36

• $18.00

• $9.03

• $0.00

You take out a loan for $15,000 with an annual interest rate of 5% for a term of 3 years. Using the monthly payment formula, what is your monthly payment?

Harold borrowed $8,000 for 5 years at an APR of 2.75%. What is the total payment?

The table lists the balances at the end of each year for a 15-year, $50,000 loan with an 8% interest rate. What is the balance at the end of year 10?

• $23,565.62

• $19,572.66

• $15,248.28

• $10,564.98

What is the loan amount?

• $50,000.00

• $19,572.66

• $48,201.08

• $10,564.98

Ramona is attending a 4-year college. As a freshman, she was approved for a 10-year, federal unsubsidized student loan for $5,300 at 4.29%. She knows he has the option of beginning repayment of the loan in 4.5 years. She also knows that during this nonpayment time, interest will accrue at 4.29%

How much interest will Ramona accrue during the 4.5-year nonpayment period?