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2019 FA Consumer Credit Test (Ch. 3)

Last updated about 6 years ago
15 questions
1) Installment Loans
Ms. Donohue bought a $1,455 T.V. at Fry’s Electronics on an installment plan. The installment agreement included a 15% down payment and 18 monthly payments of $80.78 each.
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1a) What is the amount of the down payment?

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1b) What is the sum of her monthly payments?

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1c) How much will Ms. Donohue pay for the TV on the installment plan?

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1d) What is the finance charge?

2) Monthly Payments using a table
Use the table below to answer the following questions:
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2a) Use the table to calculate the monthly payment for a five - year loan of $1,000 with an APR of 11.25%?

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2b) Kayla is taking out a three year loan of $14,000 with an APR of 9.75% Use the table to calculate the monthly payment on this loan?

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2c) What is the sum of the payments for Kayla's three year loan?

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2d) What is the overall finance charge for Kayla's three year loan?

3) Monthly Payment Formula
Use the Monthly Payment Formula to answer the following questions. Also, don't forget to make sure you have a tab open with https://www.desmos.com/scientific for your calculations.
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3a) Tyler borrowed $28,000 for a 6 year car loan at an APR of 5.99%. What is his monthly payment?
(Hint: Use https://www.desmos.com/scientific to calculate using the formula above.)

4) Student Loans
Jose has been accepted into a 2-year Culinary Arts Program at the Greenfield Career Institute. He has been approved for a $7,500 unsubsidized 10-year Federal Loan at 4.53%. He knows he has the option of beginning repayment of the loan in 2.5 years. He also knows that during this non-payment period, interest will accrue at 4.53%.
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4a) How much interest will Jose accrue during the 2.5-year non-payment period?

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4b) If Jose decides to make no payments during the 2.5 years, the interest will be capitalized at the end of that period. What will the new principal be when he begins making loan payments?

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4c) What will the monthly payment be when he begins repayment of his 10 year loan?

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4d) How much will he pay in interest (finance charge) over the life of the loan?

5) Credit Card Statements
Use the summary section of the credit card statement to answer the following questions:
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5a) What is the finance charge?

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5b) What is the new balance?