Question 1

Calculate average daily balance:

Accepted Answer

The answer of Calculate average daily balance:
  ...

Question 2

Given a mortgage of $100,000 at 7% for 15 years, prepare a one-month amortization schedule. What is the balance after the first month's payment?

Accepted Answer

N= 180 I/Y= ..583333 PV= 10000

Question 3

Calculate APR:

Accepted Answer

The answer of Calculate APR:
  ...

Question 4

The amount financed equals the cash price plus the down payment.

Accepted Answer

A) True 
 B)False

Question 5

The average daily balance is the same as the daily balance.

Accepted Answer

A) True 
 B)False

Question 6

Revolving charge accounts must be paid off completely by the end of the month.

Accepted Answer

A) True 
 B)False

Question 7

APR cannot be calculated by use a financial calculator.

Accepted Answer

A) True 
 B)False

Question 8

Today most companies calculate the finance charge on their credit card accounts as a percentage of the yearly balance.

Accepted Answer

A) True 
 B)False

Question 9

Most companies calculate the finance charge on credit card accounts as a percentage of the:

Accepted Answer

A)  Daily balance 
B)  Weekly balance 
C)  Average daily balance 
D)  Average weekly balance 
E)  None of these 
A)  Daily balance 
B)  Weekly balance 
C)  Average daily balance 
D)  Average weekly balance 
E)  None of these

Question 10

Neal Selznick bought a new van for $10,000. Neal put down $1,000 and paid $275 monthly for 40 months. What is the total amount of finance charge that Neal paid at the end of 40 months?

Accepted Answer

The answer of Neal Selznick bought a new van for...

Question 11

Dan Miller bought a new Toyota truck for $28,000. Dan made a down payment of $6,000 and paid $390 monthly for 70 months. The total finance charge was:

Accepted Answer

A)  $13,300 
B)  $5,300 
C)  $11,300 
D)  $27,300 
E)  None of these 
A)  $13,300 
B)  $5,300 
C)  $11,300 
D)  $27,300 
E)  None of these

Question 12

Calculate APR by table from this advertisement:

Accepted Answer

The answer of Calculate APR by table from this advertisement:
...

Question 13

Calculate the monthly payment:

Accepted Answer

The answer of Calculate the monthly payment:
  ...

Question 14

A billing cycle is always 30 or 31 days.

Accepted Answer

A) True 
 B)False

Question 15

The monthly payment is calculated by totaling the finance charge and amount financed and dividing that by the number of payments of the loan.

Accepted Answer

A) True 
 B)False

Question 16

Jamie purchased a condo for $89,900 with a down payment of 20%; her credit terms were 5% for 15 years. What is Jamie's monthly payment?

Accepted Answer

N= 180 I/Y

Question 17

In calculating the daily balance, cash advances are:

Accepted Answer

A)  Added in 
B)  Subtracted out 
C)  Sometimes added in 
D)  Sometimes subtracted out 
E)  None of these 
A)  Added in 
B)  Subtracted out 
C)  Sometimes added in 
D)  Sometimes subtracted out 
E)  None of these

Question 18

The average daily balance is equal to the sum of daily balances:

Accepted Answer

A)  Plus number of days in billing cycle 
B)  Minus number of days in billing cycle 
C)  Divided by number of days in billing cycle 
D)  Multiplied by number of days in billing cycle 
E)  None of these 
A)  Plus number of days in billing cycle 
B)  Minus number of days in billing cycle 
C)  Divided by number of days in billing cycle 
D)  Multiplied by number of days in billing cycle 
E)  None of these

Question 19

Average daily balance is equal to sum of daily balances divided by number of days in the billing cycle.

Accepted Answer

A) True 
 B)False

Question 20

Justin Chan bought a Scion car for a price of $8,200, putting down $800 and financing the remainder with 60 monthly payments of $179.99. The APR is:

Accepted Answer

A)  Close to 15% 
B)  Close to 14% 
C)  Close to 13 ½% 
D)  Between 16.00 and 16.25% 
E)  None of these 
A)  Close to 15% 
B)  Close to 14% 
C)  Close to 13 ½% 
D)  Between 16.00 and 16.25% 
E)  None of these

Exam 10: Installment Buying and Revolving Charge Credit Cards

Calculate average daily balance:

Given a mortgage of $100,000 at 7% for 15 years, prepare a one-month amortization schedule. What is the balance after the first month's payment?

Calculate APR:

The amount financed equals the cash price plus the down payment.

The average daily balance is the same as the daily balance.

Revolving charge accounts must be paid off completely by the end of the month.

APR cannot be calculated by use a financial calculator.

Today most companies calculate the finance charge on their credit card accounts as a percentage of the yearly balance.

Most companies calculate the finance charge on credit card accounts as a percentage of the:

Neal Selznick bought a new van for $10,000. Neal put down $1,000 and paid $275 monthly for 40 months. What is the total amount of finance charge that Neal paid at the end of 40 months?

Dan Miller bought a new Toyota truck for $28,000. Dan made a down payment of $6,000 and paid $390 monthly for 70 months. The total finance charge was:

Calculate APR by table from this advertisement:

Calculate the monthly payment:

A billing cycle is always 30 or 31 days.

The monthly payment is calculated by totaling the finance charge and amount financed and dividing that by the number of payments of the loan.

Jamie purchased a condo for $89,900 with a down payment of 20%; her credit terms were 5% for 15 years. What is Jamie's monthly payment?

In calculating the daily balance, cash advances are:

The average daily balance is equal to the sum of daily balances:

Average daily balance is equal to sum of daily balances divided by number of days in the billing cycle.

Justin Chan bought a Scion car for a price of $8,200, putting down $800 and financing the remainder with 60 monthly payments of $179.99. The APR is:

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