Vocabulary
4-1
4-2
4-3
Random
100
What is the vocabulary term for the following definition? "You use this when you purchase something and do not pay for it immediately."
Credit
100
Ben buys a $4,700 motorcycle using an installment plan that requires a 15% down payment. How much is his down payment?
$705.00
100
What is the monthly payment for a $3,000 two-year loan with an APR of 7.50%?
$135.00
100
What is the vocabulary term for the following definition? "This is the summary of the loan balance over the lifetime of the loan and on a monthly or yearly basis."
Monthly Payment Calculator
100
What is the vocabulary term for the following definition? "Everything that you own."
Assets
200
What is the vocabulary term for the following definition? "This person agrees to pay back the loan if the borrower is unable to do so."
Cosigner
200
Aquilah wants to purchase a balance beam that costs $1,420. She signs an installment agreement requiring a 20% down payment. She currently has $300 saved. Does she have enough for the down payment?
Yes, the down payment is $284.
200
Erica took out a $7,500 loan with an APR of 6.875% and agreed to pay it back monthly over six years. How many monthly payments did she make?
72 months
200
Fill in the missing parts of the loan length formula. ln(____/p) - (ln( ____ / p - ____ / 12) ___ = --------------------------------------------- 12 ln ( 1 + ____ / 12)
ln( M/p) - (ln( M / p - r / 12) t = --------------------------------------------- 12 ln ( 1 + r / 12)
200
What is the monthly payment formula?
p (r / 12 ) ( 1 + r / 12) ^12t M = ---------------------------------- (1 + r / 12)^12t - 1
300
What is the vocabulary term for the following definition? "The customer pays part of the selling price at the time of purchase."
Down Payment
300
Connor bought a $2,300 snowmobile on the installment plan. He made a $450 down payment, and he has to make monthly payments of $93.50 for the next two years. How much interest will he pay?
$394.00
300
Maksim is taking out a $15,320, two-year loan with an APR of 10.29%. What will be the finance charge for this loan to the nearest dollar?
$1,696.00
300
Consider the following equation, 200 = e^x. Solve for x.
5.29
300
What is the vocabulary term for the following defintion? "Organizations or people that extend credit to consumers."
Creditors
400
What is the vocabulary term for the following definition? "The agreement you must sign when you borrow money from the bank."
Promissory Note
400
Serena purchased a new car on the installment plan for m dollars. She made a 20% down payment, and agreed to pay x dollars per month. Express the finance charge algebraically.
0.2 m + 24x - m, or 24x - 0.8m
400
Courtney needs to borrow $7,000 from a local bank. She pay a monthly payment for a 9.75% loan. What is the monthly payment for a three-year loan?
$225.05
400
Nate is taking out a 4.3% loan to purchase a $18,000 car. The length of the loan is 8 years. How much will he pay in interest?
$3,305.28
400
What is the loan payment formula?
ln( M/p) - (ln( M / p - r / 12) t = --------------------------------------------- 12 ln ( 1 + r / 12)
500
What is the vocabulary term for the following definition? "This agreement requires borrowers to pay a fee if they wish to pay back an entire loan before the due date."
Pre-payment Penalty
500
Corey bought a new DJ system for $1,980 on the installment plan. The installment agreement included a 10% down payment and 18 monthly payments of $116 each. a). How much is the down payment? b). What is the total amount of monthly payments? c). How much did Jean pay for the snow thrower on the installment plan? d). What is the finance charge?
a). $198 b). $2,088 c). $2,286 d). 306
500
Dominic has a $10,000, three-year loan with an APR of 7.25%. a).What is the monthly payment? b). What is the total amount of the monthly payments? c). What is the finance charge?
a). $309.90 b). $11,156.40 c). $1,156.40
500
Mauree wants to borrow $25,000 to purchase a car. After looking at her monthly budget, she realizes all she can afford to pay per month is $300. The bank is offering a 5.9% loan. What would the length of her loan need to be so that she can stay within her budget?
8.29 ~ 9 years
500
Explain Balloon Payment in your own words.
When the last monthly payment on some loans are higher than the previous payments.
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