Exam 12: Business and Consumer Loans

Solve the problem. -The monthly payments on a $50,000 loan at 7% interest for 25 years is $353.50. How much of the first monthly payment will go toward the principal?

Use the real estate amortization table to find the monthly payment for the loan. -What is the monthly payment on a 30-year loan of $106,600 if the annual interest rate is 7%?

Solve the problem. -An architecture firm purchases 5 new workstations for $4,000.00 each. The firm makes a down payment of $8,000.00 and amortizes the balance with monthly loan payments to the bank of 8% for 3 years. Use the abbreviated loan payoff table to prepare an amortization schedule showing the first 5 payments.

Find the annual percentage rate using the annual percentage rate table. -Amount Financed: $720 Finance Charge: $81.43 Number of monthly payments: 24

Use the loan payoff table to find the monthly payment and finance charge for the loan. -Amount financed: $251,075 Number of months: 36 APR: 11%

Find the finance charge and total installment cost of the loan. Round to the nearest cent. -Amount financed: $170 Down payment: $40 Cash price: $210 Number of payments: 18 Amount of payment: $10.69

Use the loan payoff table to find the monthly payment and finance charge for the loan. -Amount financed: $26,730 Number of months: 18 APR: 12%

Find the total monthly payment including taxes and insurance for the loan. Round to the nearest cent. -Amount of loan: $96,275 Interest rate: 5% Term of loan: 20 years Annual taxes: $1,577 Annual insurance: $523

Provide an appropriate response. -Explain how to construct a repayment schedule.

Solve the problem. -Use the average daily balance for the following credit card account to find the finance charge if interest is 1.31% per month on the average daily balance. Assume one month between billing dates.

Use the real estate amortization table to find the monthly payment for the loan. -What is the monthly payment on a 15-year loan of $93,900 if the annual interest rate is 7%?

Solve the problem using the loan payoff table or an amortization table. -A movie star purchased a home costing $708,815. He put 20% down and signed a note for monthly payments at 9% interest for 4 years. Find the amount of each monthly payment and the total amount of interest paid on the loan.

Use the real estate amortization table to find the monthly payment for the loan. -What is the monthly payment on a 20-year loan of $57,600 if the annual interest rate is 8%?

Find the total monthly payment including taxes and insurance for the loan. Round to the nearest cent. -Amount of loan: $222,000 Interest rate: Term of loan: 30 years Annual taxes: $2,775 Annual insurance: $838

Use the loan payoff table to find the monthly payment and finance charge for the loan. -Amount financed: $8,036 Number of months: 36 APR: 9%

Solve the problem. Use the approximate APR formula to estimate the APR, and round rates to the nearest tenth of a percent. -Jordan wants to buy an electric guitar for $320. The music store offers to let him buy it on credit, paying only $11.14 per month for 33 months. What is the finance charge? What is the approximate annual percentage rate?

Solve the problem. -The monthly payments on a $98,000 loan at interest for 15 years is $909.44. How much of the first monthly payment will go toward the principal?

Find the approximate annual percentage rate using the approximate annual percentage rate formula. Round to the nearest tenth of a percent. -Amount financed: $17,200 Finance charge: $3,546 Number of monthly payments: 48

Find the approximate annual percentage rate using the approximate annual percentage rate formula. Round to the nearest tenth of a percent. -Amount financed: $403 Finance charge: $50 Number of monthly payments: 18

Find the balance due on the maturity date of the note. Find the total amount of interest paid on the note. Use the United States Rule. -Principal: $38,400 Interest: 9.2% Time (days): 180 Partial payment: $20,000 on day 100