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AMDM Formative Review

Total questions: 8

Worksheet time: 16mins

Name
Class
Date
1.

Mary spent freely on a credit card in college. She accumulated $25,000 in credit card debt. Her interest rate is 15.4%. If she wants to pay it off in 10 years how much should she pay each month?

a)

2679.83

b)

209.95

c)

409.48

d)

2501.76

2.

John has decided to go to a private college. He estimates that he will have to take out about $70,000 in student loans to complete his degree. If he wants to pay off his student loans in 4 years, what will his monthly payment need to be if the interest rate is 6.5%

a)

1660.05

b)

1477.77

c)

1280.88

d)

1439.85

3.

Suzy wants to buy a car. She can afford $450 per month in car payments for the next 4 years. What is the most she can pay for a car assuming she has no down payment and can get an interest rate of 3.5%

a)

$21,446

b)

$1787

c)

$10,060

d)

$20,129

4.

Alice purchased a car for $22,000. She has good credit and was able to get an interest rate of 0.85% for her 5 year loan. What is her payment going to be?

a)

374.64

b)

451.36

c)

466.33

d)

351.36

5.

Alice purchased a car for $22,000. She has good credit and was able to get an interest rate of 0.85% for her 5 year loan. What total amount will she pay over the life of the loan?

a)

27,979.80

b)

22,478.40

c)

27,081.60

d)

21,081.60

6.

Jake wants to buy a car that costs $22,750. The dealership will finance the car for five years at 4.95% with a 15% down payment. How much will his down payment be?

a)

3412.50

b)

428.80

c)

11,261.25

d)

341.25

7.

Jake wants to buy a car that costs $22,750. The dealership will finance the car for five years at 4.95% with a 15% down payment. How much will his monthly payment be?

a)

64.31

b)

428.80

c)

364.48

d)

444.89

8.

Jake wants to buy a car that costs $22,750. The dealership will finance the car for five years at 4.95% with a 15% down payment. How much will he pay in interest over the live of the loan?

a)

3412.50

b)

19,337.50

c)

21,868.80

d)

2531.30