Exam 12: Business and Consumer Loans

Solve the problem. -Sarah Fields wants to borrow $133,000 at 4% to buy a house. How much would she save in total costs by going with a 15-year loan over a 25-year loan?

Provide an appropriate response. -Explain the method used to handle a partial prepayment of a loan using the US Rule.

Solve the problem. -The March 1 unpaid balance in an account was $190. On March 7, a payment of $75 was made. The finance charge rate was 1.7% per month of the average daily balance. Find the new balance at the end of March.

Find the unpaid balance at the end of the month for the account. - Finance rate is 1.5% on the unpaid balance.

Solve the problem. Use the approximate APR formula to estimate the APR, and round rates to the nearest tenth of a percent. -Eddie Hodges buys a complete stereo with CD for $980, paying it off at $46.19 per month for 2 years. What is the approximate APR of the loan?

Solve the problem. -The unpaid balance in an account at the beginning of December was $114. A payment of $20 was made on December 21. The finance charge rate was 1.6% per month of the average daily balance. Find the new balance at the end of December.

Solve the problem. -The unpaid balance in an account on May 1 was $184. A purchase of $35 was made on May 3. A $ 75 payment was made on May 17. The finance charge rate was 1.65% per month of the average daily balance. Find the new balance at the end of May.

Find the payment necessary to amortize the loan using the amortization table. Round to the nearest cent. -$32,000, 8% compounded semiannually, 20 semiannual payments

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: $6,761 Total number of payments: 48 Remaining number of payments, when paid in full: 11

Use the loan payoff table to find the monthly payment and finance charge for the loan. -Amount financed: $11,268 Number of months: 24 APR: 13%

Solve the problem. -The Smith's addition to their house is going to cost $23,150. On March 2 they sign a note at 9.5% interest due in 200 days. They make a partial payment on April 30 of $8000. What is the amount due on the maturity date? What is the amount of interest charged?

Find the finance charge on the revolving charge account. Assume interest is calculated on the unpaid balance of the account. Round to the nearest cent. -

Find the annual percentage rate using the annual percentage rate table. -Amount Financed: $560 Finance Charge: $38.47 Number of monthly payments: 12

Solve the problem. -On April 1, the unpaid balance in an account was $232. A payment of $50 was made on April 13. On April 17 a $17 purchase was made. The finance charge rate was 1.75% per month of the average daily balance. Find the new balance at the end of April.

Solve the problem. Use the approximate APR formula to estimate the APR, and round rates to the nearest tenth of a percent. -To help plow driveways, Joe Burk purchased a small tractor with a snowplow for $1800. He agreed to pay $90.44 per month for 22 months when he charged it. What is the approximate annual percentage rate?

Find the unpaid balance at the end of the month for the account. - Finance rate is 1.5% on the unpaid balance.

Find the approximate annual percentage rate using the approximate annual percentage rate formula. Round to the nearest tenth of a percent. -Amount financed: $127,534 Finance charge: $211,690 Number of monthly payments: 360

Find the total monthly payment including taxes and insurance for the loan. Round to the nearest cent. -Amount of loan: $79,000 Interest rate: Term of loan: 20 years Annual taxes: $1,539 Annual insurance: $538

Find the finance charge for the following revolving charge account. Assume that interest is calculated on the average daily balance of the account. -

Solve the problem. -On June 1, the unpaid balance in an account was $213. On June 13, a payment of $35 was made. The finance charge rate was 1.5% per month of the average daily balance. Find the new balance at the end of June.