Exam 12: Business and Consumer Loans

Find the total monthly payment including taxes and insurance for the loan. Round to the nearest cent. -Amount of loan: $66,500 Interest rate: 7% Term of loan: 15 years Annual taxes: $1,258 Annual insurance: $340

Find the payment necessary to amortize the loan using the amortization table. Round to the nearest cent. -$50,000, 10% compounded annually, 26 annual payments

Provide an appropriate response. -Explain how to determine the amount of each equal monthly mortgage payment that is going toward interest and the amount going toward principal.

Solve the problem. -Julio buys a bike which has a cash price of $280. He puts $30 down, and agrees to pay 12 payments of $24. After 8 payments he gets some birthday money and decides to pay off his loan. Find the unearned interest and the amount to pay off the loan.

Use the real estate amortization table to find the monthly payment for the loan. -What is the monthly payment on a 25-year loan of $93,700 if the annual interest rate is ?

Using the Rule of 78, find the amount of unearned interest for the loan paid in full before the date of maturity. Round to the nearest cent. -Finance charge: $747 Total number of payments: 24 Remaining number of payments, when paid in full: 8

Find the approximate annual percentage rate using the approximate annual percentage rate formula. Round to the nearest tenth of a percent. -Amount financed: $300 Finance charge: $50 Number of monthly payments: 24

Solve the problem. -The Montgomerys borrowed $88,000 at for 30 years to purchase a house. Find the monthly payment and the sum of the principal and interest charges.

Solve the problem. -John Atkins can afford a mortgage payment of $850 per month (not including insurance and taxes). Given a 15-year loan at 8%, find the maximum mortgage to the nearest thousand that he can afford.

Provide an appropriate response. -Explain why the approximate APR is not the APR that is disclosed to the borrower on an installment loan.

Provide an appropriate response. -Explain how to use the APR Table to determine the true APR.

Find the unpaid balance at the end of the month for the account. - Finance rate is 1.9% on the unpaid balance. Find unpaid balance at the end of Nov.

Solve the problem. -Global Transport built a new building and amortized $5,200,000 for 20 years at . Find the monthly payment.

Provide an appropriate response. -Explain the procedure used to determine the unearned interest using the Rule of 78.

Solve the problem. -The Best Company ordered $8327 worth of jewelry on credit on September 8, the note due in 90 days at 11% interest. On November 10 they made a partial payment of $2000. Find the amount due on the maturity date, and the total interest charged on the note.

Solve the problem using the loan payoff table or an amortization table. -If you borrowed $5,738,447.10 at 9% interest paid monthly for 3 years, what is the amount of each payment?

Solve the problem. -The monthly payments on a $68,000 loan at 7% interest for 30 years is $452.20. How much of the first monthly payment will go toward interest?

Find the payment necessary to amortize the loan using the amortization table. Round to the nearest cent. -The Meyers bought a Sandwich City franchise for $500,000. They paid $100,000 of their own money and borrowed the rest, agreeing to make semiannual payments over 8 years at 8% (compounded semiannually).

Provide an appropriate response. -Explain the difference between the unpaid balance method and the average daily balance method of calculating finance charges.

Solve the problem using the loan payoff table or an amortization table. -Marge and Tom Martin bought a new car for $26,500. They agreed to pay 20% down and make monthly payments for 4 years at 10% (compounded monthly)to pay off the rest. Find the amount of each monthly payment.