Exam 7: Applications of Percent

What is wrong, if anything, with the statement below? Answer true or false . If false, explain your reasoning. If you owe $2,400 for 7 days in January and $2,000 for 24 days, then the average daily balance (to the nearest cent) is $\frac { ( \$ 2,400 \times 7 ) + ( \$ 2,000 \times 24 ) } { 30 } = \$ 2,160$

Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account is depleted, and they will need to borrow money to buy a new one. The bank offers them a personal loan at 21% (APR), and BigBox offers them an installment loan at 18% (add-on-rate). Suppose that the refrigerator at BigBox costs $1,650 plus 7% sales tax, and Karen and Wayne plan to pay for the refrigerator for 4 years. Should they finance it with the bank or with BigBox? Why?

Suppose that you want to purchase a home for $400,000 with a 30-year mortgage at 6% interest. Suppose that you can put 30% down. Use the table and determine the amount of the down payment, the amount to be financed, the monthly payments, the total amount of interest, and the necessary monthly income for you to be able to afford this loan. }">$\text { cellpadding="0" cellspacing="0" align="center" width=" } 99 \% \text { " border="1"> }$ $\text { Monthly Cost to Finance } \$ 1,000$ Number of Years Financed Rate of 5 Years 10 Years 20 Years 30 Years Interest =60 =120 =240 =360 6.0\% 19.33 11.10 7.16 6.00 7.0\% 19.80 11.61 7.75 6.65 8.0\% 20.28 12.13 8.36 7.34 9.0\% 20.76 12.67 9.00 8.05 10.0\% 21.25 13.22 9.65 8.78 11.0\% 21.74 13.77 10.32 9.52 12.0\% 22.24 14.35 11.01 10.29

Use the table to answer the question. }">$\text { cellpadding }=" 0 \text { " cellspacing }=" 0 \text { " align }=\text { "center" width=" } 99 \% \text { " border="1"> }$ $\text { Monthly Cost to Finance } \$ 1,000$ Number of Years Financed Rate of 5 Years 10 Years 20 Years 30 Years Interest =60 =120 =240 =360 6.0\% 19.33 11.10 7.16 6.00 7.0\% 19.80 11.61 7.75 6.65 8.0\% 20.28 12.13 8.36 7.34 9.0\% 20.76 12.67 9.00 8.05 10.0\% 21.25 13.22 9.65 8.78 11.0\% 21.74 13.77 10.32 9.52 12.0\% 22.24 14.35 11.01 10.29 Find the amount of the down payment (rounded to the nearest hundred dollars) necessary for the buyer to afford the monthly payments for a $130,000 home with a 30-year 8% loan, if his monthly salary is $2,600 with monthly bill payments of $500.

Find the complement of $17 \%$ . __________%

Find the APR (rounded to the nearest percent) for the loan below. Purchased a car for $15,950 at 8.4% add-on interest for 5 years. __________ %

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

Estimate the answer by picking the best choice without calculating. A reasonable APR for a credit card is

What variable or expression represents future value in interest formulas?

Find the discount if the original price is $530 and the percent markdown is 5%. $__________

Find the total amount, including tax, for an item with a price of $4,379.00 and a tax rate of $4 \frac { 1 } { 2 } \%$ .

What is the future value after 9 years if you deposited $3,500 for your child s education and the interest was guaranteed at 15% compounded monthly? $A =$ $ __________

Use estimation to select the best response. Do not calculate. A $147,000 30-year loan at 10% + 1.5 points + $200 would have a comparison rate of __________.

Use estimation to select the best response. If you deposit $50 in a bank account for a year, the future value is likely to be $__________.

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

Find the sales tax for the item using a sales tax rate of 5%. Stereo, $469.95

Find the sale price of a belt that is on sale for $\frac { 1 } { 3 }$ OFF if the original price is $9.10.

A newspaper advertisement offers a $11,000 car for nothing down and 36 easy monthly payments of $418.11. What is the simple interest rate? Round your answer to the nearest percent. __________ %

Find the discount if the original price is $8.25 and the percent markdown is 10%. Round your answer to the nearest cent. $__________

If Cole wants to retire with income of $1,000 per month, how much principal is necessary to generate this amount of monthly interest income if the interest rate is 8%? $ __________