Log inSign up for FREE
Library

Math Apps 8.4-8.6 Review

Last updated almost 5 years ago
35 questions
Brad purchased a washer and dryer for a total of $854. He made a 25% down payment and financed the rest with 12 monthly payments of $54.30.
1

What was Brad's down payment?

1

What was Brad's total installment price?
Installment price = (monthly payment) (# of months) + down payment

1

What was Brad's finance charge (amount of interest paid)?
Finance Charge = Total installment price - price of item

Mary purchased a four-piece luggage set for $750. She made a down payment of 15% and was charged 6% interest. She had the loan for a total of 8 months.
1

What was Mary's down payment?

1

What was Mary's amount financed (loan amount)?
Amount financed = Price of item - down payment

1

What was the interest charged to Mary for the 8 months of her loan?
Interest = (Amount financed)(rate)(time in years)

1

What was Mary's total installment price?
Total installment price = price of item + interest

1

What was Mary's monthly payment?

Judy purchased a car for $10,900. Her down payment was $1,000. She paid the balance with monthly payments of $310 for 3 years.
1

What was the amount Judy had to finance (her loan amount)?
Amount financed = price of item - down payment

1

How much interest did Judy end up paying over the life of the loan?
Interest = (Monthly payment)(# of months) - loan amount

1

What was Judy's APR?

Then find that number (or number closest to it) in the appropriate line in the table...

1

Suppose Judy decided to pay off her loan at the end of 24 months instead of 36 months. Use the actuarial method to find the unearned interest.

k = # of payments remaining, excluding the current one (the # of payments she does not have to pay)
R = monthly payment
h = find this in table 8-1...use the value for k to figure out the row and use the interest rate for the column

1

What is Judy's payoff amount?
Payoff amount = (monthly payment)(# of months left including the 24th payment) - unearned interest

A loan for $1,500.00 is to be paid back in 30 monthly installments of $61.25.
1

What is the interest paid over the entire life of the loan?
Interest = (Monthly payment)(# of months) - loan amount

1

The borrower decides to pay off the balance after 24 payments have been made instead of the original 30 payments. What is the amount of interest saved (unearned interest)? Use the rule of 78.

The Rule of 78:

f = finance charge (your answer from #14)
k = # of remaining monthly payments
n = # of original monthly payments

For the month of February, Pete had an unpaid balance on his credit card of $563.25 at the beginning of the month. He had purchases of $520.50 and made a payment of $350.00 during the month.
1

Find Pete's finance charge if the interest rate is 15.35% per month on the unpaid balance.
Interest = (previous month's balance)(rate)(1 month)

1

Find Pete's new balance on March 1.

Sid's Used Cars had these transactions on its credit card statement:
Fill in the missing numbers from the table below.
1
1
1
1
1
1

What is the average daily balance for Sid's Used Cars for the month of April?

1

If the interest rate is 11.5%, find the finance charge for Sid's Used Cars.

1

Use your answers from #21 and #24 to calculate the new balance for May 1.

A home was purchased for $145,000 with a 20% down payment. The mortgage rate was 8.5% and the term of the mortgage was 25 years.
1

Find the amount of the down payment.

1

Find the amount of the mortgage (loan amount).
Mortgage = Price - Down Payment

1

Find the monthly payment.

Use the table shown for #29-34.

1

What was the high price of the stock for the last 52 weeks?

1

What was the low price of the stock for the last 52 weeks?

1

If you own 475 shares of this stock, how much was the dividend you received?
Dividend = (# of shares)(dividend per share)

1

How many shares of the stock were sold yesterday?

1

What was the closing price of the stock the day before yesterday?

1

Find the annual earnings per share of the stock.

1

An investor purchased 90 shares of stock for $83.43 per share. The broker's fee for buying the stock was 2% commission. What was the total cost of the stock?