Financial Algebra

Carly took a $7,000, 3-year loan with an APR of 3.15%. What is the total amount of Carly's monthly payments?

• $204.03

• $2,448.36

• $7,661.50

• $7,345.08

Bill can afford a monthly payment of $475. He wants to take out a $20,000 loan at 4.25% interest rate. What should the length of the loan be? Round your answer to the nearest year.

• approximately 8 years

• approximately 2 years

• approximately 4 years

• approximately 15 years

Shania bought a $1,455 drum set on the installment plan. The installment agreement included a 15% down payment and 18 monthly payments of $80.78 each. How much is Shania's down payment?

• $21.83

• $97

• $80.78

• $218.25

Shania bought a $1,455 drum set on the installment plan. The installment agreement included a 15% down payment and 18 monthly payments of $80.78 each. What is the total amount of Shania's monthly payments?

• $969.36

• $1,454.04

• $1,535.78

• $1,455.00

Shania bought a $1,455 drum set on the installment plan. The installment agreement included a 15% down payment and 18 monthly payments of $80.78 each. How much will Shania pay for the drum set on the installment plan?

• $1,672.29

• $1,535.78

• $1,454.04

• $1,673.25

Sarah is taking out a $24,400, 4-year new-car loan with an APR of 2.88%. The first step to finding the finance charge for this loan is ...

• ...calculate the monthly payment.

• ...Use I=Prt to calculate the interest for the loan.

• ...determine the resale value of the car.

• ...calculate the monthly interest rate.

Rodrigo is attending a 4-year college. As a freshman, he was approved for a 10-year, federal unsubsidized student loan in the amount of $5,300 at 4.29%. He knows he has the option of beginning repayment of the loan in 4.5 years. He also knows that during this non-payment period, interest will accrue at 4.29%. How much interest will Rodrigo accrue during the 4.5-year non-payment period?

• $10,231.65

• $0

• $1,023.17

• $909.48

Rodrigo is attending a 4-year college. As a freshman, he was approved for a 10-year, federal unsubsidized student loan in the amount of $5,300 at 4.29%. He knows he has the option of beginning repayment of the loan in 4.5 years. He also knows that during this non-payment period, interest will accrue at 4.29%. If Rodrigo 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.

• $15,531.65

• $6,209.48

• $7,573.70

• $6,323.17

Rodrigo is attending a 4-year college. As a freshman, he was approved for a 10-year, federal unsubsidized student loan in the amount of $5,300 at 4.29%. He knows he has the option of beginning repayment of the loan in 4.5 years. He also knows that during this non-payment period, interest will accrue at 4.29%. Suppose Rodrigo only paid the interest during his 4 years in school and the 6-month grace period. What will he now pay in interest over the term of his loan?

• $5,527.37

• $2,249.97

• $3,296.87

• $22,737.00

Rodrigo is attending a 4-year college. As a freshman, he was approved for a 10-year, federal unsubsidized student loan in the amount of $5,300 at 4.29%. He knows he has the option of beginning repayment of the loan in 4.5 years. He also knows that during this non-payment period, interest will accrue at 4.29%. Rodrigo made his last monthly interest-only payment on July 8. His next payment is due on August 8. What will be the amount of that interest-only payment?

• $227.37

• $19.31

• $110.42

• $193.11