College Prep Math Unit 12 - Loans Review

Question 1

$2,000 loan at 9% for 48 months with a monthly payment of $49.77. Balance=$1,527.08 after payment 12. Find 13th interest

Accepted Answer

$11.45 interest, $1,538.53 needed to pay off the loan with the 13th payment

Question 2

If the previous principal balance is $1,000, paying $3.20 in principal would result in a new principal balance of:

Accepted Answer

$996.80

Question 3

What is the finance charge (total interest) paid on an installment loan of $100 at 5% for 48 months?

Accepted Answer

$10

Question 4

With a single payment loan of $100 for 90 days, at 12% ordinary interest. What is the total interest accrued?

Accepted Answer

$3.00

Question 5

For a $5,000 loan with monthly payments and an interest rate of 12%, how much of the first payment is paid in interest?

Accepted Answer

$50

Question 6

With a single payment loan of $100 for 90 days, at 12% ordinary interest. What is the maturity value of the loan?

Accepted Answer

$103.00

Question 7

For a $4,000 loan with monthly payments and an interest rate of 9%, how much of the first payment is paid in interest?

Accepted Answer

$30

Question 8

Does a 15-year or 30-year mortgage for the same amount and interest rate have a larger payment, and less interest?

Accepted Answer

15-year fixed rate mortgage

Question 9

What is the finance charge (total interest) paid on an installment loan of $6,000 at 10% for 36 months?

Accepted Answer

$1,800

Question 10

Using exact interest, how many days do you assume are in a year?

Accepted Answer

365

Question 11

For a $10,000 loan with monthly payments and an interest rate of 6%, how much of the first payment is paid to interest?

Accepted Answer

$50

Question 12

With a monthly payment of $100 and $23 is paid in interest through the 21st payment, how much is paid in principal?

Accepted Answer

$77

Question 13

With a monthly payment of $200 and $57 is paid in interest through the 29th payment, how much is paid in principal?

Accepted Answer

$143

Question 14

$1,000 loan at 6% for 36 months with a monthly payment of $30.42. Find payment 1's interest/principal, and new balance.

Accepted Answer

$5 interest, $25.42 principal, $974.58 new balance.

Question 15

For a loan with monthly payments and an (annual) interest rate, what fraction of the year should we assess interest on?

Accepted Answer

\frac{1}{12}

Question 16

With a single payment loan of $100 for 90 days, at 12% exact interest. What is the total interest accrued?

Accepted Answer

$2.96

Question 17

If the previous principal balance is $10,000, paying $90.49 in principal would result in a new principal balance of:

Accepted Answer

$9,909.51

Question 18

Ideally, a family's housing expenses should never be more that what portion of income?

Accepted Answer

30%

Question 19

With a monthly payment of $1500 and $1250.75 is paid in interest through the 3rd payment, how much is paid in principal?

Accepted Answer

$249.25

Question 20

Final (13th) payment = $1,538.53, monthly payment = $49.77 for 48 months. Find interest saved by paying off at #13.

Accepted Answer

$253.19

Question 21

Given a $2,500 loan for a refrigerator, how much would a 20% down payment be? and what would be the amount financed?

Accepted Answer

$500 down, $2,000 financed

Question 22

Ideally, what percent down-payment should you put down when buying a house to avoid paying PMI?

Accepted Answer

20%

Question 23

With a single payment loan of $100 for 90 days, at 12% exact interest. What is the maturity value of the loan?

Accepted Answer

$102.96

Question 24

Using ordinary interest, how many days do you assume are in a year?

Accepted Answer

360

College Prep Math Unit 12 - Loans Review

Questions 24

College Prep Math Unit 12 - Loans Review

Questions 24