3.1-3.3 Quiz- 25

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Erick needs $500 to pay her bills. Advanced payday loans will charge her $85 in interest and she must pay it back in 24 days. What is the APR for this payday loan? Round to the nearest percent.

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Mrs. Petter bought a stove for $3,980 on an installment plan. The installment plan included a 10% down payment and 22 monthly payments of $245. How much did she pay altogether (monthly and down payment)?

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Andrew bought a used truck on an installment plan for $6,000. He didn't have to pay a down payment. He made $296 payments for 2 years. What was his finance charge?

Craig is attending a four-year college. As a freshman, he was approved for a 10-year subsidized federal loan for $11,600 at 4.99%. He knows he has the option of beginning repayment of the loan in 4.5 years. He also knows that interest will accrue at 4.99% during his non-payment period. 

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Who will pay Craig's interest while in school?

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How much interest will accrue while Craig is in school?

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Given the situation below, match the following answers to the table above. You take out a 3 year loan at...

Draggable item		Corresponding Item
1%, how much is your payment?		$28.21
5%, how much is your payment?		$29.97
6%, how much is your payment?		$30.42

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Using the table above, what are the monthly payments for an $8,000, 4-year loan with an APR of 7%? Round to the nearest cent.

Melissa is taking out a 4-year loan for $8,000 with an APR of 2.25%. 

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What is her monthly payment? Round to the nearest cent.

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What is her finance charge? Round to the nearest cent.

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Draggable item		Corresponding Item
wage garnishment		free money due to financial need you do not have to pay back
grace period		the time period you are in school plus 6 months after you graduate.
grant		This is a voluntary deduction from an employee’s paycheck, used to pay off debts.
wage assignment		This is an involuntary form of wage assignment, often enforced by court order.

Rodrigo is attending a four-year college. As a freshman, he was approved for a 10-year unsubsidized federal loan for $15,600 at 4.99%. He knows he has the option of beginning repayment of the loan in 4.5 years. He also knows that interest will accrue at 4.99% during his nonpayment period. 

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If Rodrigo decides not to make payments during his 4.5 years, what will his new principal be when he begins repayment? Round to the nearest cent.

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Rodrigo has decided to pay his interest while in college. He made a last monthly interest-only payment on July 2nd. His next payment is due on August 2nd. What will the amount of that interest-only payment be?

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Which of the following FICO scores would give a borrower the BEST chance of being approved for a loan while also paying the lowest APR?

1

Erick needs $500 to pay her bills. Advanced payday loans will charge her $85 in interest and she must pay it back in 24 days. What is the APR for this payday loan? Round to the nearest percent.

Mrs. Petter bought a stove for $3,980 on an installment plan. The installment plan included a 10% down payment and 22 monthly payments of $245. How much did she pay altogether (monthly and down payment)?

Andrew bought a used truck on an installment plan for $6,000. He didn't have to pay a down payment. He made $296 payments for 2 years. What was his finance charge?

Who will pay Craig's interest while in school?

How much interest will accrue while Craig is in school?

Given the situation below, match the following answers to the table above. You take out a 3 year loan at...

Using the table above, what are the monthly payments for an $8,000, 4-year loan with an APR of 7%? Round to the nearest cent.

What is her monthly payment? Round to the nearest cent.

What is her finance charge? Round to the nearest cent.

If Rodrigo decides not to make payments during his 4.5 years, what will his new principal be when he begins repayment? Round to the nearest cent.

Rodrigo has decided to pay his interest while in college. He made a last monthly interest-only payment on July 2nd. His next payment is due on August 2nd. What will the amount of that interest-only payment be?

Which of the following FICO scores would give a borrower the BEST chance of being approved for a loan while also paying the lowest APR?

James needs to borrow $5,000 to put toward a used car. Which of the following would most likely offer him the lowest interest rate on a loan?