Exam 10: Consumer Mathematics

Solve the problem. -Barbara knows that she will need to buy a new car in 5 years. The car will cost $15,000 by then. How much should she invest now at 5%, compounded quarterly, so that she will have enough to Buy a new car?

Solve the problem. -Jesse invests $1000 for 2 years in an investment that bears 8% interest compounded annually. On the same day that Jesse invests his money, Shirley invests $1000 in a simple interest account with an interest rate of 8%. On the date of maturity, Shirley re-invests her money, including the interest, for a second year. Without using calculations, explain which person, if either, has made the more profitable investment.

Use the compound interest formula to compute the total amount accumulated. -$4000 for 3 years at 2% compounded annually

Solve the problem. -For what type of computation are the actuarial method and the rule of 78s used? Which technique requires the use of an APR table?

Use a day counting table to find the exact number of days from the first date to the second date. Assume the year is not a leap year unless otherwise indicated. -February 4 to June 11 (the year is not a leap year)

Solve the problem. -On the April 2 billing date, Monica had a balance due of $1598.54 on her credit card. The Transactions during the following month were: April 4 Charge: textbooks \ 358.56 April 7 Payment \ 151.29 April 19 Charge: gasoline \ 24.04 April 21 Charge: fertilizer \ 31.24 The interest rate on the card is 1.2% per month. Using the average daily balance method, find the Finance charge on May 2 (April has 30 days).

Use the sinking fund formula to determine the payment needed to reach the accumulated amount. Round the answer to the nearest cent. -Annual payments with 8% interest compounded annually for 9 years to accumulate $5700

Solve the problem. Round to the nearest hundredth. -8.5% of 45 is what number?

Solve the problem using the rule of 78s. -Dallas Wright took out a 48-month fixed installment loan of $6500 to purchase a new all-terrain Vehicle (ATV). He began making monthly payments of $175.50. Instead of making his 27th Payment, Dallas decides to repay his loan in full. How much interest will Dallas save?

Use a day counting table to determine the due date of the loan if the loan is made on the given date for the given number of days. -January 17 for 150 days (the year is a leap year)

Solve the problem. Assume that simple interest is being calculated in each case. Round your answer to the nearest cent. -Allan borrowed $6500 from his father to buy a car. He repaid him after 4 months with interest of 2% per year. Find the total amount he repaid.

Solve the problem. Use an annual percentage rate table if necessary. -Reggie King took out a 36-month fixed installment loan of $17,000 to open a sporting goods store. He began making monthly payments of $536.63. Reggieʹs business does better than expected and Instead of making his 30th payment, Reggie decides to repay his loan in full. What is the total Amount due to pay off the balance (use the actuarial method)?

Solve the problem using the rule of 78s. -A college student buys a used car for $5000. She makes a down payment of $1,100 and finances the Balance at 8.5% APR over 24 months. Before making the 15th payment, she decides to pay the Remaining balance on the loan. How much interest will the student save?

Solve the problem. -How much money should you invest now to have $15,000 in 9 years if you invest the money at a Rate of 1.2%, compounded monthly?

Use a day counting table to find the exact number of days from the first date to the second date. Assume the year is not a leap year unless otherwise indicated. -December 3 to May 19 (the year of the May date is a leap year)

Solve the problem using the rule of 78s. -A fisherman buys a new boat for $45,000. He makes a down payment of $17,000 and finances the Balance at 8% APR over 60 months. Before making the 45th payment, the fisherman decides to pay The remaining balance on the loan. How much interest will the fisherman save?

Use the simple interest formula to determine the missing value. Round dollar amounts to the nearest cent and percents to the nearest hundredth when necessary -p = ?, r = 4%, t = 90 days, i = $117.65

Solve the problem -A store manager paid $113 for an item and set the selling price at $150.29. What was the percent Markup?

Use a day counting table to find the exact number of days from the first date to the second date. Assume the year is not a leap year unless otherwise indicated. -July 14 to January 18

Use a day counting table to find the exact number of days from the first date to the second date. Assume the year is not a leap year unless otherwise indicated. -August 25 to March 8 (the year of the March date is not a leap year)