Quiz about LOANS Quiz

Question 1

Mel Guzman obtained an installment loan of $2,700 to purchase a new computer. The annual percentage rate is 7%. She must repay the loan in 24 months. What is the finance charge?

Accepted Answer

$378.00

Answer

$189.00

Answer

$203.23

Answer

$210.11

Question 2

Micah Jones obtained an installment loan of $12,500 to remodel his home. The annual percentage rate is 7.25%. He must repay the loan in 48 months. What is the finance charge?

Accepted Answer

$3,625

Answer

$1,900

Answer

$2,500

Answer

$3,000

Question 3

Adriana Black obtained a loan to purchase a boat for $9,275 at 6.25% interest for 36 months. The monthly payment is $283.22. How much of the first monthly payment is interest?

Accepted Answer

$48.31

Answer

$48.47

Answer

$58.03

Answer

$60.34

Question 4

Emmy Watson is buying a new oven for $915.00. She made a down payment of 20% and financed the remainder. How much did she finance?

Accepted Answer

$732.00

Answer

$183.00

Answer

$915.00

Answer

$731.00

Question 5

James Morse obtained a $7,500 loan at 7% for 54 months. His monthly payment is $162.31. After 12 payments, the balance is $6,030.71. What is the interest on the 13th payment?

Accepted Answer

$35.18

Answer

$42.21

Answer

$37.68

Answer

$40.21

Question 6

Ernesto Sanchez obtained an $8,900 loan at 14% for 24 months. His monthly payment is $427.31. After 15 payments, the balance is $3,630.76. What is the interest on the 16th payment?

Accepted Answer

$42.46

Answer

$50.82

Answer

$36.31

Answer

$45.38

Question 7

Adriana Black obtained a loan to purchase a boat for $9,275 at 6.25% interest for 36 months. The monthly payment is $283.22. How much of the first monthly payment is for principal?

Accepted Answer

234.91

Answer

250.00

Answer

200.50

Answer

300.00

Question 8

Adriana Black obtained a loan to purchase a boat for $9,275 at 6.25% interest for 36 months. The monthly payment is $283.22. What is the new balance?

Accepted Answer

$9,040.09

Answer

$7,500.00

Answer

$8,000.00

Answer

$8,991.78

Question 9

James Morse obtained a $7,500 loan at 7% for 54 months. His monthly payment is $162.31. After 12 payments, the balance is $6,030.71. What is the payment if he pays off the loan with the 13th payment?

Accepted Answer

$6,065.89

Answer

$6,240.71

Answer

$7,120.54

Answer

$6567.12

Question 10

James Morse obtained a $7,500 loan at 7% for 54 months. His monthly payment is $162.31. After 12 payments, the balance is $6,030.71. How much is the interest saved if the loan was paid off on the 13th month?

Accepted Answer

$751.13

Answer

$350.00

Answer

$600.50

Answer

$455.69

Question 11

Ernesto Sanchez obtained an $8,900 loan at 14% for 24 months. His monthly payment is $427.31. After 15 payments, the balance is $3,630.76. What is the payment if he pays off the loan with the 16th payment?

Accepted Answer

$3673.12

Answer

$4,000.00

Answer

$2,500.50

Answer

$5,200.25

Question 12

Ernesto Sanchez obtained an $8,900 loan at 14% for 24 months. His monthly payment is $427.31. After 15 payments, the balance is $3,630.76. How much interest is saved by paying the loan off early?

Accepted Answer

$172.67

Answer

$213.03

Answer

$300.50

Answer

$400.25

Question 13

Why does the amount of INTEREST you owe on a loan decrease over time?

Accepted Answer

With each payment, principal decreases, so interest lowers

Answer

The institution trusts you more, so they lower the interest

Answer

With each payment, principal increases; so interest lowers

Answer

Banks are legally required to lower interest rates over time

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