Loan Payment Calculations and Concepts

Loan Payment Calculations and Concepts

Assessment

Interactive Video

Mathematics, Business, Life Skills

9th - 12th Grade

Practice Problem

Hard

Created by

Mia Campbell

FREE Resource

The video tutorial explains how Rachel can determine the time needed to pay off a loan of $11,500 with a 7.5% interest rate compounded monthly, using the TI-84 TVM Solver. It covers the setup of the problem, inputting the necessary loan details into the calculator, and solving for the number of payment periods, which is found to be 72 months.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the total amount Rachel borrowed?

$12,000

$11,000

$11,500

$10,000

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What tool is used to solve the loan payment problem?

Financial Calculator

TI-84 TVM Solver

Excel Spreadsheet

Online Loan Calculator

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the annual interest rate on Rachel's loan?

8.5%

7.5%

6.5%

5.5%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much does Rachel pay monthly?

$150

$300

$200

$250

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the future value of the loan once it is paid off?

$1,500

$1,000

$500

$0

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How many payment periods are there per year?

6

10

12

8

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the significance of the negative sign in the payment amount?

It indicates a loan.

It indicates a withdrawal.

It indicates a deposit.

It indicates a payment.

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