Ch 3 Review

Archie had these daily balances on his 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 on his average daily balance. The APR is 21.3%.

14 days @ $1,501.08

3 days @ $412.04

5 days @ $296.01

8 days @ $1,484.76

a.What is the average daily balance? Round to the nearest cent.

b. What is the finance charge?

• a. $1,186.98

  b. $21.07

• a. $1,289.71

  b. $23.09

• a. $961.91

  b. $18.72

• a. $1,090.58

  b. 20.91

Tags

CCSS.7.RP.A.3

Maria has the following daily balances on her credit card for the last billing cycle. She did not pay the card in full the previous month, so she will incur a finance charge on her average daily balance. The APR is 19.5%.

10 days @ $1,200.50

7 days @ $350.75

6 days @ $980.00

7 days @ $1,150.25

a. What is the average daily balance? Round to the nearest cent.

b. What is the finance charge?

• a. $1,020.45

  b. $16.55

• a. $946.40

  b. $15.38

• a. $1,100.75

  b. $18.00

• a. $1,075.60

  b. $17.50

Tags

CCSS.7.NS.A.3

Barry bought a $60,000 Mercedes on an installment plan. The installment agreement included a 25% down payment and 60 monthly payments of $900 each.

a.How much is the down payment?

b. Considering the down payment and the 60 monthly payments, how much will Barry pay for the Mercedes on the installment plan?

c. How much interest did he pay over the 60 months? (finance charge)

• a. $15,000

  b. $69,000

  c. $9,000

• a.$15,000

  b. $72,000

  c. $12,000

• a. $12,000

  b. $65,000

  c. $5,000

• a. $12,000

  b. $62,000

  c. $2,000

Tags

CCSS.7.RP.A.3

Sarah purchased a $50,000 BMW on an installment plan. The agreement required a 20% down payment and 48 monthly payments of $1,000 each.

a. What is the amount of the down payment?

b. Including the down payment and the 48 monthly payments, what is the total amount Sarah will pay for the BMW?

c. How much interest did she pay over the 48 months?

• a. $10,000

  b. $58,000

  c. $8,000

• a. $10,000

  b. $62,000

  c. $12,000

• a. $12,000

  b. $60,000

  c. $10,000

• a. $12,000

  b. $64,000

  c. $14,000

Tags

CCSS.7.RP.A.3

Joseph is attending a 4-year college. As a first-year student, he was approved for a 10-year federal unsubsidized student loan at 7.09% APR in the amount of $40,000. He knows he has the option of beginning repayment of the loan in 4.5 years. He also knows that during this nonpayment period, interest will accrue at 7.09%.

a. How much interest will Joseph accrue during the 4.5-year nonpayment period?

 

b. If Joseph decides to make no payments during the 4.5 years, the interest will be capitalized at the end of that period. What will the new principal be when he begins making loan payments?

 c. What will be the amount of his monthly payment?

• a. $12,762

  b. $52,762

  c. $615.06

• a. $12,762

  b. $52,762

  c. $601.05

• a. $10,089

  b. $50,089

  c. $572.23

• a. $9,878

  b. $49,878

  c. $432.76

Alex borrowed $2,500 for a 4-year term with an APR of 7.5% to purchase a new laptop.

a. What is the monthly payment?

b. At the end of the 4-year term, how much money will Alex have paid in total?

c. What is the total interest paid?

• a. $60.45

  b. $2,890.96

  c. $390.96

• a. $60.45

  b. $2,901.47

  c. $401.47

• a. $62.50

  b. $3,000.00

  c. $500.00

• a. $55.75

  b. $2,676.00

  c. $176.00