Loans

by Steve Durant

| 8 QuestionsNote from the author:

Personal Finance

1

1

Derek Boone purchased an automobile sound system for $850 and financed it at 12% ordinary interest for 90 days. How much interest did he pay?

A $25.50

B $27.80

C $38.60

D $102.30

2

1

Robert Hernandez purchased fishing equipment for $438.50. He made a 15% down payment and financed the remainder. How much did he finance?

A $65.78

B $372.73

C $498.50

D $622.39

3

1

Barbara Morris purchased a dining room table and chairs for $2,305.60. She made a 35% down payment and financed the rest. How much was her down payment?

A $560.80

B $806.96

C $1,230.99

D $1,498.64

4

1

Terri Naujock is purchasing a new computer system for $1,430.86 with an installment loan that has an APR of 12%. The store financing requires a 15% down payment and 12 monthly payments. What is the finance charge? The monthly payment is $8.88 per $100.

A.$17.89

B $79.77

C $84.26

D $214.63

5

1

Susan Castro obtained a loan of $1,450 for a new air conditioner for her home. The interest rate is 13% and the monthly payment is $129.51. What is the interest on the first monthly payment?

A.$12.37

B $15.72

C $24.56

D $111.23

6

1

Janet Murphy took out a simple interest loan at 9.5% interest for 12 months. Her previous balance is $890. What is the final payment if the loan is paid off with the next payment?

A.$892.37

B $895.43

C $897.05

D $987.50

7

1

Michael LeBlanc took out a simple interest loan at 12.8% interest for 6 months. His previous balance is $235.40. What is his final payment if the loan is paid off with the next payment?

A.$237.91

B .$321.90

C $365.09

D $368.71

8

1

Cathy Jones obtained a loan for $1,300 and promised to repay the loan in 12 months. The finance charge is $73.32. What is the APR?

A.10.00%

B 10.25%

C 10.50%

D 10.75%

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