Exam 10: Consumer Mathematics

Solve the problem. -You have a tax refund of $496.61. You are able to get the tax refund immediately from your tax Preparation agency for a finance charge of $49.88. What annual simple interest rate are you paying For this loan assuming the tax refund check would be available in 13 days? Round to the nearest Hundredth.

Solve the problem. Round to the nearest cent. -You intend to create a college fund for your baby. If you can get an interest rate of 5.5% Compounded monthly and want the fund to have a value of $177,122 after 18 years, how much Should you deposit each month?

Use the compound interest formula to compute the total amount accumulated. -$3500 for 6 years at 5.5% compounded monthly

Solve the problem. Use an annual percentage rate table if necessary. -A farmer buys a new harvester for $70,000. He makes a down payment of $21,000 and finances the Balance at 7.0% APR over 60 months. Before making the 24th payment, the farmer decides to pay The remaining balance on the loan. What is the total amount due to pay off the balance (use the Actuarial method)?

Use the compound interest formula to compute the total amount accumulated. -$1810 for 4 years at 2% compounded annually

Solve the problem. -Under what circumstances is the average daily balance method a more favorable method to the borrower than the previous balance method? Explain.

Solve the problem. -You borrow $900 from your bank for 3 months. The loan agreement states that you must repay the Loan at a rate of $300 per month plus interest. The interest rate for the loan is 2% above the prime Interest rate. During the first month the prime rate is 4.25%, during the second month it is 5.25%, And during the third month it is 5.5%. What is the total amount of interest you pay on the loan?

Solve the problem. -Andrea Gilfordʹs savings account has a balance of $453. After 2 years, what will the amount of Interest be at 4% compounded quarterly?

Solve the problem. -While on a business trip in February, Bob Barrett charged the following expenses to his companyʹs Credit card: meals ($218), entertainment ($167), and hotel ($436). On March 1, Bob makes a Payment of $165 and makes no other charges on this credit card. The bank that issues the card Charges 1.6% interest per month. What is the balance due on April 1?

Use an annual percentage rate table to solve the problem. -A family purchased a new ski boat for $18,500. The loan agency required a 15% down payment And financed the balance for 36 months with an APR of 6.0%. Determine the total finance charge And monthly payment for the loan.

Solve the problem. -When the Scott Pearson Companyʹs stock increased in value from $100.00 per share to $125.00 per share, the company reported to its shareholders that their stocks had increased in value by 25%. The stock price remained fixed at $125 for a few months, but then it fell back down to $100.00 per share. At that time, the Scott Pearson Company reported to the shareholders that the stock had decreased by 20%. Since the price increase and decrease are exactly the same, should not the percent increase and the percent decrease be equal? Explain.

Solve the problem. -In your own words, describe and compare the previous balance method and the average daily balance method.

Solve the problem. Round to the nearest cent. -James has set up an ordinary annuity to save for his retirement in 19 years. If his monthly Payments are $200 and the annuity has an annual interest rate of 7.5% compounded monthly, What will be the value of the annuity when he retires?

Solve the problem using the rule of 78s. -Hassan used a fixed installment loan from his bank to finance his used car purchase. He borrowed $5500 and has a 36 monthly payments of $220.00 each. Instead of making his 13th payment, Hassan decides to pay the remaining balance on the loan. How much interest will Hassan save?

Solve the problem. -You purchase a 194-day, $1000 U.S. Treasury bill at 0.12% discount. On the date of maturity, you Will receive $1000. How much did you actually pay for the Treasury bill?

Solve the problem. -On the March 7 billing date, Kara had a balance due of $320.03 on her credit card. The transactions During the following month were: March 12 Payment \1 80.35 March 15 Charge: pet supplies \2 71.08 March 23 Charge: sofa \8 22.72 April 2 Charge: gift \2 4.99 The interest rate on the card is 1.5% per month. Using the previous balance method, find the Finance charge on April 7.

Write as a decimal. - $\frac { 1 } { 8 } \%$

Solve the problem. Round to the nearest cent. -To start a new business, Eric invests $765.13 each month in an ordinary annuity paying 7% interest Compounded monthly. Find the amount in the annuity after 5 years.

A partial payment is made on the date(s) indicated. Use the United States Rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year. - Effective Maturity Partial Payment Principal Rate Date Date Amount Date \ 6500 4.25\% May 16 February 22 \ 3500 January 9

Solve the problem. -Which of the following rules, methods, or formulas might require you to use an APR table: Actuarial method, average daily balance method, bankerʹs rule, compound interest Formula, percent change formula, rule of 78s, simple interest formula, United States rule, Previous balance method.