Exam 7: Applications of Percent

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="60\%" border="0">

What is wrong, if anything, with the following statement? Explain your reasoning. If you obtain a quotation for a home costing $315,000, obtain a 30-year loan at $7.5 \% + \frac { 1 } { 2 } \text { point } + \$ 200$ , and make a 10% down payment, you can find the total amount of interest paid on this loan as follows: $\$ 315,000 \times 0.9 = \$ 283,500$ the Table entry for a 7.5%, 30-year loan is 6.99, so the monthly payment is $\$ 6.99 \times 283.5 = 1,981.67$ . Then, I =A-P =\ 1,981.67(360)-\ 315,000 =398,401.20

Estimate the answer by picking the best choice without calculating. The method of calculation disadvantageous both to the consumer and to the credit card company is the

Find the sales tax for the item using a sales tax rate of 5%. Round your answer to the nearest cent. Purse, $59.99 $__________

Find the complement of the number $\frac { 5 } { 7 }$ .

Find the cost of a home in 25 years, assuming an annual inflation rate of 3%, if the present value of the house is $186,500. $ __________

Find the cost of monthly rent for a 2-bedroom apartment in 30 years, assuming an annual inflation rate of 3%, if the current rent is $350.

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=" 51\% " border="0"> Balance Rate Payment Method \ 4,00025\%\ 150 Average daily balance $ __________

Marsha must have surgery and she does not have the $15,000 cash necessary for the operation. Talking to an administrator at the hospital, she finds that it will accept MasterCard, VISA, and Discover credit cards. All of these credit cards have an APR of 18%, so she figures that it does not matter which card she uses, even though she plans to take a year to pay off the loan. Assume that Marsha makes a payment of $900 and then receives a bill. Show the interest from credit cards of 18% APR according to the previous balance, adjusted balance, and average daily balance methods. Assume that the month has 31 days and that it takes 14 days for Marsha's payment to be mailed and recorded. Round your answers to the nearest cent. Previous balance method. $ __________ Adjusted balance method. $ __________ Average daily balance method. $ __________

Theron wants to save $6,750. If he has $5,000 and invests it at 5% simple interest, how long will it take him to obtain $6,750? Round your answer to the nearest year. __________ years

Find the sales tax for the item using a sales tax rate of 5%. Table saw, $147.95

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. }">$\text { cellpadding }=" 0 \text { " cellspacing }=" 0 " \text { width }=" 61 \% \text { " border="0"> }$

Fill in the table, assuming simple interest. cellpadding = "0 cellspacing= =0" width ="69\% " border ="1"> I P r t Future Interest Principal Rate Time Value

Determine the down payment and the amount to be financed for a home with a price of $148,500 and a down payment of 5%. Down payment = $ __________ Amount to be financed = $ __________

Find the sales tax for the item using a sales tax rate of 6%. Round your answer to the nearest cent. Set of pots and pans, $151.95 $__________

Use estimation to select the best response. If $I = \rho r t$ and $P = \$ 39,426.55$ , $r = 9.5 \%$ , and $t = 2 \text { years }$ , estimate $I$ . Choose 500, 8,000, 100,000, or 200,000. $ __________

Determine the comparable interest rate for a $50,000 loan with the following quoted information. Give your answer to two decimal places, if necessary. 9.85% + 3 pts + $150 origination fee __________ %

A newspaper advertisement offers a $4,000 car for nothing down and 36 easy monthly payments of $132.46. What is the simple interest rate? Round your answer to the nearest percent.

Find the future value of $21,728 at 7.05% compounded monthly for 23 years, using a calculator and the future value formula $A = P( 1 + i ) ^ { N }$ where $A$ is future value, $P$ is present value, $i = \frac { r } { n }$ and $N= n t$ $A =$ $ __________

Find the future value of $201,262 at 6.75% compounded monthly for 28 years, using a calculator and the future value formula $A = D ( 1 + i ) ^ { N }$ where $A$ is future value, $P$ is present value, $i = \frac { r } { n }$ and $M = n t$