Exam 11: Consumer Credit and Mortgages

Saheel has a charge card with a monthly rate of 1.4% on amounts up to $1,000 and 0.9% on amounts over $1,000. Saheel's previous balance was $1,421.51. He made a payment of $175, charged $423.89, and was issued a credit for $14.90. Using the previous balance method, what is his new balance?

Winnie Polk can buy a car for $10,250. The dealer will give her $1,500 for her old car if she uses their financing option, and she can finance the rest with 36 monthly payments of $275. Winnie could also borrow the money from a bank for a total cost of $576.50. How much would Winnie save by borrowing from the bank instead of financing through the dealer?

Mrs. Wong bought a diamond necklace for 18 monthly payments of $88 each and a total finance charge of $164. She paid the necklace off 3 months early. What is the payoff amount?

Hal Jacobsen purchased a lawn mower priced at $340 on an installment plan. Hal put 10% down and will pay the remaining balance in 12 monthly payments of $36 each. How much is Hal paying in finance charges?

On the 1st of the month, the beginning balance on Ashley's charge account was $1,299.34. A payment of $119 was made on the 14th of the month. Purchases of $67.50 were made on the 21st of the month. The charge account has a 31-day billing cycle with a monthly rate of 1.6%. Using the average daily balance method, what is the new balance?

The APR for Luke's charge account at Bernie's Hardware Store is 15.6%. Using the previous balance method, what are the finance charges on a previous balance of $388.46?

Paul Hare had a previous balance of $216.54 on his clothing store credit card. He made purchases of $32.10 and a payment of $100. The interest charge was 2.1%. What is the new unpaid balance of Paul's credit card using the previous balance method?

Kaylah has a charge card with a monthly rate of 1.7% on amounts up to $1,000 and 1.1% on amounts over $1,000. Kaylah's previous balance was $1,406.35. She made a payment of $250, charged $113.48, and was issued a credit for $129.63. Using the previous balance method, what is her new balance?

Nina Jessup has an unpaid balance of $265 on her credit card with an interest rate of 1.8%. What is the interest charged on the account for the month?

A ski boat was purchased for 36 monthly payments of $135 each and a total finance charge of $349. How much is the interest refund after 12 payments? What is the payoff amount?

What is the refund fraction on a 48-month loan paid off in 32 months?

The APR on a charge account is 13.8%. What is the monthly rate?

On January 1, the previous balance for Donna Small's charge account was $342.23. On the following days, she made the following purchases: January 12, $23.90 and January 20, $99.56. On January 15, Donna made a $60 payment. Using the average daily balance method, find the finance charge and unpaid balance on February 1 if the interest is 1.5% per month.

Nancy purchased a Hawaiian vacation that she is paying off in installments. If she put $350 down and pays $115 a month for 9 months, what is the installment price?

Fay and James purchased a living room set on installment with a $325 down payment and an installment price of $3,257. If Fay and James paid 36 equal installments, how much was each payment?

Mr. Sanchez bought a tool set for 12 monthly payments of $45.78 each and a total finance charge of $62.89 He paid the tool set off 4 months early. What is the final payment?

Tyrone Brown is going to purchase a car on installment. His down payment is $1,575 with 36 payments of $327.80. The truck is priced at $12,000. What is the finance charge?

Aja has a charge card with a monthly rate of 1.5% on amounts up to $1,200 and 1% on amounts over $1,200. Her previous balance was $2,237.89. She made a payment of $210, and purchases of $164.25. Using the previous balance method, what is her new balance?

Ping is going to purchase a truck on installment. His down payment is $1,300 with 48 payments of $290. The truck is priced at $12,990. What is the finance charge?

Luigi has a charge card at Willis' Auto Supplies with an APR of 15%. Luigi wants to calculate the finance charges on a previous balance of $319.67. Which statement is true?