Exam 11: Consumer Credit and Mortgages

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?

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?

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?

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

Ken's charge account has an APR of 18% and is on a 31-day billing cycle. On the 1st of the month, the beginning balance on Ken's charge account was $713.49. A payment of $87 was made on the 13th of the month. Purchases of $12.78 were made on the 23rd of the month. Using the average daily balance method, what is the new balance?

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.

Becky bought a big screen TV on installment in 24 months and paid off the loan 4 months early. If Becky agreed to pay $210 in finance charges, what is the interest refund?

Mica bought a grandfather clock on installment with a down payment of $150 and 18 payments of $46.87. What is the installment price?

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?

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?

The installment price is the total of the installments plus the _____________.

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?

On May 1, the unpaid balance on a credit card is $132. During the month, purchases of $16.95, $82.64, and $5.35 are made. Using the previous balance method, what is the unpaid balance on June 1, if the finance charge is 1.9% of the unpaid balance and a payment of $90 is made May 12?

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?

Jacob is using Excel to track the installment loan he used to buy a new boat. He has entered the purchase price in Cell B5, the interest rate in Cell B6, the down payment percent in Cell B7, and the years for the loan in Cell B8. Formulas will be entered to calculate amount financed in Cell B9, finance charge in Cell B10, and monthly payment in Cell B11. What should the formula be to calculate the amount Jacob will need to finance?

A small business owner is going to use Excel to track finance charges for customers using credit. When she is setting up her spreadsheet, she will need to enter the previous balance, annual interest rate, and payments made. What three items will she need to calculate in Excel?

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?

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?

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?

In the refund fraction, the numerator is the sum of the digits of the _________ and the denominator is the sum of the digits of the __________.