Exam 10: Installment Buying and Revolving Charge Credit Cards

Pete Sole bought a used car for $8,000. Pete put down $2,000 and financed the balance at 10 1/2% for 60 months. What is his monthly payment?

The APR represents the:

The daily balance is the previous balance plus cash advances plus purchases minus any payments.

Given the following: The average daily balance is:

Amount financed is equal to:

Calculate the monthly payment:

Mel Blanc bought a new dining room set for $6,600. Mel put down $1,000 and financed the balance at 12% for 36 months. What will his monthly payment be?

The Truth in Lending Act regulates interest charges.

The APR represents the stated interest rate.

The cost of credit reports would be included in the amount financed.

Open credit in a revolving charge plan results in:

Bill Moore bought a stereo selling for $5,800, putting down $1,200. The payment schedule was for 48 monthly payments of $117.50. What is the APR?

Calculate (A) finance charge, (B) rebate, and (C) payoff.

Calculate the finance charge:

Pete Size read the following partial advertisement: Price $20,999; down payment $1,000; cash or trade; $390.85 per month for 60 months. Calculate (A) the total finance charge and (B) the APR.

Pete Frank bought a computer for $4,000. Pete put down $500 and financed the balance at 10 1/2% for 36 months. What is his monthly payment?

Finance charge equals total of all monthly payments minus amount financed.

Calculate APR (to nearest hundredth percent):

The finance charge is equal to the total of all monthly payments:

Able Long buys a new desk for $2,400. Able will pay back $250 per month. Monthly interest is 3% on the unpaid balance. Calculate the balance outstanding after the second payment. (Use the U.S. Rule.)