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business math project

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

what is a single payment loan?

a)

is a loan that you repay with one payment after a specified period of time.

b)

is a written promise to pay a certain sum of money on a specific date in the future.

c)

of the loan is the total amount you must repay. It includes both the principal and the interest owed.

2.

What is a promissory note

a)

is the amount of time for which the loan is granted.

b)

is a loan that you repay with one payment after a specified period of time.

c)

is a written promise to pay a certain sum of money on a specific date in the future.

3.

what is a loan's term?

a)

is the amount of time for which the loan is granted.

b)

the loan's title

c)

is a loan that you repay with one payment after a specified period of time.

4.

interest formula

a)

principal+rate+time

b)

principalxratextime

c)

princial+rate+maturity value

5.

ordinary interest formula

a)

principal/time

b)

princial+rate+time

c)

Principal X Rate X

Time

360

6.

Exact interest formula

a)

Principal × Rate X

Time

365

b)

princialxratextime/360

c)

principal+time

7.

Anita Sloane's bank granted her a single-payment loan of $7,200 for 91 days to pay for new merchandise for her candle shop. Determine the maturity value of the loan if the rate is (a) 6% ordinary interest or

(b) 6% exact interest.

a)

7307.70

b)

667.80

c)

5567.80

8.

Claudia Valdez took out a single-payment loan for $1,500.00 at 7.8% ordinary interest to pay her federal income tax bill. If the loan's maturity value is $1,529.25, when would Claudia have to pay back the loan if she took it out on March 1?

a)

86

b)

70

c)

90

9.

what does APR means

a)

is an index showingthe costof borrow-

ing money on a yearly basis, expressed as a percent.

b)

a loan that you repay with one payment after a specified period of time.

c)

amount of time for which the loan is granted

10.

BlakeandJacqueline Toepfer are purchasing a$1,399.99 side-by-side refrigerator with an installment loan that has an APR of 12%. The store financing requires a 10% down payment and 12 monthly payments.

What is the finance charge?

a)

65.66

b)

87.44

c)

82.69