Finance Charge
If an iPhone costs $1200, and Jim puts $200 down, and pays $100 for 12 months, how much was the finance charge?
$200
Trevor buys a $775 television. He can't afford to pay cash, so he uses the installment plan, which requires an 18% down payment. How much is the down payment?
$139.50
Anna wants to purchase a new dresser for her room. She finds the one she wants costs $1150. She looks at her budget and finds that she can save $80 per month. How long will it take her to save for the dresser? Round to the nearest whole number.
15 Months
Jess took out a $2870 loan with an interest rate of 8.3%. What is the monthly payment if she has 6 years to repay the loan?
$50.74
A pawnshop will loan up to 33% of the value of a borrower's collateral. Charles wants to use $6,000 worth of jewelry as collateral for a loan. What is the maximum amount that he could borrow from the pawnshop?
$1980
If Jenna ends up paying $1350 for her fridge, but the price advertised online was $1100, how much did she pay in finance charges?
$250
Steven bought a $9,250 ATV on an installment plan. He made an $500 down payment and pays $223 a month for the installment plan. The agreement was for Steven to make monthly payments for 4years.
a. How much is the down payment?
$500
Steven bought a $9,250 ATV on an installment plan. He made an $500 down payment and pays $223 a month for the installment plan. The agreement was for Steven to make monthly payments for 4years.
b. What is the total amount paid in monthly payments?
$10704
Hannah is taking out a 4.3 %loan to purchase an $18,000 car. The length of the loan is 8 years. How much will she pay in interest?
$1599.80
Marie loses her credit card in the mall. She doesn’t notice until she sees a charge for $350. She calls her bank and they tell her she has to pay….
$50 in charges
Steven wants the ATV($9250). The salesperson told Steven he could alternatively have done no down payment and made monthly payments of $205 for 5 years.
a. If Steven chose this option, what would he ultimately pay for the ATV?
b. What would be the finance charge?
$12300
$3050
Steven bought a $9,250 ATV on an installment plan. He made an $500 down payment and pays $223 a month for the installment plan. The agreement was for Steven to make monthly payments for 4years.
c. What did Steven end up paying for the ATV?
$11204
Jaron is taking out a $9,550 loan for medical bills. The agreement was for a 3-year loan at 5.5% APR.
a. What will be his monthly payment?
$288.37
Claude wants to borrow $25,000 to purchase a car. After looking at his monthly budget, he realizes that all he can afford to pay per month is $300. The bank is offering a 5.9% loan. What would need to be the length of his loan be so that he can stay within his budget?
8.96 years or 9
Marie gets her credit card stolen by a robber. She immediately reports the situation to her bank. The robber uses her card to buy $2000 worth of Dr Pepper. How much does Marie have to pay?
$0!!!
Jaron is taking out a $9,550 loan for medical bills. The agreement was for a 3-year loan at 5.5% APR.
b. What will be his finance charges at the conclusion of his loan?
$831.32
Jerry wants to buy a $35,000 car. They insist he puts a downpayment of 12%. How much is the downpayment?
$4200
Trudy is a police officer, so she can use the Police and Fire Credit Union. The credit union will lend her $73,000 for 8 years at 9.45% APR. The same loan at her savings bank has an APR of 11.7%.
a. What is Trudy's monthly payment if she chooses the credit union?
$1086.58
Fallon wants to borrow $34,800 to purchase a car. After looking at his monthly budget, he realizes that all he can afford to pay per month is $550. The bank is offering a 5.1% loan.
a. What would need to be the length of his loan be so that he can stay within his budget? Round to the tenths place.
b. What if he realized he could put forth $50 more per month. What would the new length of the loan be? Round to the tenths place.
6.2 years
5.6 years
Lucia's APR is 23%. The average of her purchases was $559.34. What is her finance charge for this month?
$10.74
Trudy is a police officer, so she can use the Police and Fire Credit Union. The credit union will lend her $73,000 for 8 years at 9.45% APR. The same loan at her savings bank has an APR of 11.7%.
c. How much would Trudy save on the monthly payment if she takes the loan from the credit union?
d. How much would she save in finance charges by taking the loan from the credit union?
$87.88
$8436.48
MHow much should Harris put down to be able to pay for his phone completely in 12 months if the phone costs $1300 and he can only afford $75 a month and wants to avoid a finance charge?
$400
Trudy is a police officer, so she can use the Police and Fire Credit Union. The credit union will lend her $73,000 for 8 years at 9.45% APR. The same loan at her savings bank has an APR of 11.7%.
b. What is Trudy's monthly payment if she chooses the savings bank?
$1174.46
Fallon wants to borrow $34,800 to purchase a car. After looking at his monthly budget, he realizes that all he can afford to pay per month is $550. The bank is offering a 5.1% loan.
c. If Fallon were to pay a $4,000 down payment on the car, what would the new length of the loan be? Round to the tenths place.
d. Using the information from part c, how would that change how much interest he pays?
5.3 years
$4180
Lucia did not pay last month's credit card bill in full. Below is a list of Lucia's daily balances for her last billing cycle. Find Lucia's average daily balance.
— For 4 she owed $336.51.
— For 8 days she owed $228.70.
— For 2 days she owed $490.20.
— For 9 days she owed $695.35.
— For 7 days she owed $909.43.
$559.34