Exam 7: Applications of Percent

If you want to buy a house priced at $225,000, what are some of the actions you could take to make the monthly payments affordable, given your monthly income and ongoing bills?

What is the rule of thumb for determining the monthly payment you can afford?

Find the amount of interest and the monthly payment for the loan described below. Round your answers to the nearest cent. Purchased a car for $24,150 at 2.7% add-on interest for 2 years.

Use estimation to select the best response. Do not calculate. Assume that interest rates are close to 10%. If you purchase a new car for $11,000, and finance it for 3 years, then the amount of interest you would expect to pay is about ______.

Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. Round your answer to the nearest cent. }">$\text { cellpadding }=0 " \text { cellspacing }=" 0 " \text { width }=" 59 \% \text { " border="0"> }$

Suppose $950 is deposited in an account for 4 years paying 6% compounded daily. What is the future value of the account? $A =$ $ __________

Find the APR (rounded to the nearest percent) for the loan below. Purchased a car for $48,750 at 8.9% add-on interest for 5 years.

Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. Round your answer to the nearest cent. cellpadding="0" cellspacing="0" width=" 61\% " border="0"> Balance Rate Payment Method \5 006\%\ 50 Average daily balance $ __________

If Cole wants to retire with income of $2,000 per month, how much principal is necessary to generate this amount of monthly interest income if the interest rate is 6%?

Estimate the answer by picking the best choice without calculating. If I pay off my credit card balance each month, the most important cost factor is

Find the sale price of a pair of skis that are on sale for $\frac { 1 } { 2 }$ OFF if the original price is $450. $__________

Suppose that an insurance agent offers you a policy that will provide you with a yearly income of $149,500 in 20 years. What is the comparable annual income today, assuming an inflation rate of 6%?

Find (period rate), (number of periods), and (future value) for the information given. Fill in the table. }">$\text { cellpadding="0" cellspacing="0" width=" } 94 \% \text { " border="1"> }$ Compounding P r t n i A Period Present Annual Time Period Number of Future Value Rate Rate Periods Value Quarterly \ 2,200 12\% 540 days ? ? ? ?

Use the table to answer the question. ">$\text { cellpadding }=" 0 \text { " cellspacing }=" 0 \text { " align }=\text { "center" width }=" 60 \% \text { " border }=" 1 ">$ Effect of Down Payment on the Cost of a $\$ 120,000$ Home with Interest at $8 \%$ Down Payment Percent Total Payment Total Payment Total Payment \ 0 20 Years 25 Years 30 Years \ 6,000 0\% \ 240,895 \ 277,854 \ 316,987 \ 12,000 5\% \ 228,850 \ 263,961 \ 301,136 \ 24,000 10\% \ 216,806 \ 250,068 \ 285,289 \ 30,000 20\% \ 192,715 \ 222,282 \ 253,588 \ 36,000 30\% \ 168,626 \ 194,499 \ 221,890 What is wrong, if anything, with the following statement? Explain your reasoning. For a $120,000 loan with interest rate 8% and 30% down, the total amount that can be saved by changing the term from 30 years to 25 years is $27,391, because the total amount of payments changes from $221,890 to $194,499.

What is $n$ for a semiannual compounding period? $n =$ __________

Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. Round your answer to the nearest cent. cellpadding="0" cellspacing="0" width=" 62\%" border="0">

Use estimation to select the best response. Do not calculate. If you purchase a $595.95 item and pay for it with monthly installments for 1 year, the monthly payment is ______________________________. ($50 per month / more than $50 per month / less than $50 per month)

Find the amount of interest and the monthly payment for the loan described below. Round interest to the nearest dollar and monthly payment to the nearest cent. A $1,000 loan at 11% add-on rate for 3 years.

Estimate the answer by picking the best choice without calculating. The method of calculation most advantageous to the credit card company is the __________.

A car dealer will sell you a $11,505 car for $2,543 down and payments of $282.59 per month for 48 months. What is the total amount paid for both car and financing? Round your answer to the nearest cent. $ __________