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Calculating Monthly Loan Payments

Calculating Monthly Loan Payments

Assessment

Interactive Video

Mathematics

9th - 10th Grade

Practice Problem

Hard

Created by

Thomas White

FREE Resource

Miss Hearne explains how to calculate the regular monthly payment on a loan. The process involves understanding key terms like principal, interest, and finance charge. The principal is calculated by subtracting the down payment from the purchase price. The total amount to be repaid includes the principal and any finance charges. The monthly payment is found by dividing the total repayment amount by the number of monthly payments. In this example, a $4,000 purchase with a $400 down payment and a $270 finance charge results in a monthly payment of $107.50 over 36 months.

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17 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main topic discussed in the video?

How to invest in stocks

How to budget expenses

How to calculate monthly loan payments

How to save money

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the purchase price of the item in the given problem?

$4,000

$270

$400

$3,600

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the down payment in the problem?

$3,600

$4,000

$270

$400

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT a term related to loan payments?

Principal

Finance Charge

Interest

Dividend

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do you calculate the principal amount?

Add the purchase price and down payment

Divide the purchase price by the number of payments

Subtract the down payment from the purchase price

Multiply the purchase price by the interest rate

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the principal amount in the problem?

$4,000

$270

$400

$3,600

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the first step in calculating the regular monthly payment?

Add the down payment to the purchase price

Find the number of payments

Calculate the principal amount

Determine the interest rate

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