MAT104 30 Questions Week 4 Finance

1. ) If *I* = *Prt* and *P* = $398.90, *r* = 9.85%, and *t* = 1 year, estimate *I*

2.) If the principal P = $500, the rate r = 4%, and time t = 1 year

find the following:

What is the amount of interest

What is the future value?

3.) If the* P* = $700, the interest *I* =$462, and time *t* = 6 years, find the following .

What is the rate?

What is the future value?

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4. ) Fill in the blanks . (round your answers to the nearest dollar.)

Interest = $437

Principal = ?

Rate = 5 %

Time = 8 yr

Future value = ?

5.) If the principal P = $ 400 , the interest I = $64, and the rate r = 8% , find the following:

What is the time?

What is the future value?

6.) Suppose you see a car with an advertise price of $27,850 at $612.95 per month for 5 years . What is the amount of interest paid?

7.) If a business borrows $16,000 and repays $25,400 in 5 years what is the simple interest rate?

8.) Find the amount of interest and the monthly payment for the loan. Purchase living room set for $3,600 at 12% add-on interest for 2 years . ( round your monthly payment to the nearest cent.)

9.) Find the amount of interest and the monthly payment for the loan. Purchase a car for $42,400 at 2.7% add-on rate for 5 years ( Round your answers to the nearest cent)

10.) Find the APR for the following loan (monthly payments). (Round your answer to the nearest full percent .) Purchase a refrigerator for $2,100 at 20% add-on interest for 3 years.

11.) A car dealer will sell you the $16,450 car of your dreams for $3,200 down and payments of $339.95 per month for 48 months . What is the total amount paid for both car and financing? (round your answer to the nearest cent)

12.) A car dealer will sell you a used car for $8,720 with $720 down payments of $225.33 per month for 48 months, what is the simple interest rate? ( Round each answer to the nearest tenth.)

13.) A car dealer carries out the following calculations. What is the annual percentage rate? (round your answer to the nearest tenth)

Calculations:

List price: $5,368.00

Options: $1,625.00

Destination charges: $ 200.00

Subtotal: $7,193.00

Tax: $ 431.00

Less trade-in: $2,932.00

Amount to be financed: $4,692.00

8% interest for 48 months : $1,501.63

Monthly payment: $ 129.05

14.) What is a reasonable APR for 5-year installment loan?

15.) Convert the following credit card rate to the APR : Oregon 1 3/4 % per month?

16.) Calculate the monthly finance charge for the following credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. (round your answer to the nearest cent)

Balance : $300

Rate: 18%

Payment: $250

Adjusted balance method :

17.) Calculate the monthly finance charge for the following credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. Assume 365 days in a year. (Round your answer to the nearest cent)

Balance : $3,000

Rate: 21%

Payment: $1,500

Adjusted Balance method;

18.) Suppose you have a $1,000 charge of credit card charging 1.5% monthly interest using the adjusted balance method. The minimum payment due in May is $40. How much will you save in interest charge in June by paying $80 instead?

19.) Determine how many times a year the interest on a savings account is calculated if the interest is compounded in each of the following ways

A semiannually

B Quarterly

C Daily

D Monthly

20.) If $670 is invested in a account that earns 19.25% , compounded annually, what will the account balance be after 12 years? (Round your answers to the nearest cent.)

21.) If $815 is invested in an account that earns annual interest of 3.5%, compounded semiannually, what will the account balance be after 12 years? (Round your answer to the nearest cent)

22.) Find the ending balance in an account that opens with $2,000, earns 4.5% interest compounded quarterly, and is held for 5 years. (Round your answer to the nearest cent.)

23.) Find the ending balance in an account that opens with $4,560, earns 8.5% interest compounded monthly, and is held for 5 years. (Round your answer to the nearest cent)

24.) Find the future value, using the future value formula and a calculator. (Give your answer to the nearest cent) $43.91 at 5.5% compounded semiannually for 6 years.

25.) Find the amount of compound interest earned in an account that opens with $29,000, earns 6.4% interest compound daily and is held for 20 years. Assume 360 days in a year. (Round your answer to the nearest cent.)

26.) Find the cost of a home in 2o years, assuming an annual inflation rate of 4% , if the present value of the house is, $220,000 (Round your answer to the nearest cent.)

27.) Suppose and insurance offers you a policy that will provide you with a yearly income of $280,000 in 20 years. What is the comparable annual salary today, assuming an inflation rate of 3% ? (Round your answer to the nearest cent)

28.) Determine the down payment and the amount to be financed for each home described below.

A $290,290; 10% down. The down payment is? The amount to be financed is?

B $990,000 : 20% down. The down payment is? The amount to be financed is?

29.) Determine the comparable interest rate for a $80,000 loan when the quoted information is 12.9% + 0.5 pt + $400 (Round your answer to 2 decimal places.)

30.) Supposed that you want to purchase a home for $450,000 with a 30 year mortgage at 6% interest . Suppose that you can put 30% down. Assume that the monthly cost to finance $ 1,0o0 is $6.00 , What are the monthly payments?