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kakasveta [241]
3 years ago
11

1. Your average daily balance on your charge card for the month of July is $855.28. If your card carries an annual interest rate

of 15.4%, what will your finance charge be for July?
2. You buy a car from your neighbor at a price of $9,000. You pay $500 down and pay 9.5% on the balance. If you make monthly payments of $200, how many months (to the nearest hundredth of a month) will it take to pay off the loan?

3. You get a $15,000 car loan for 4 years at 6.75% interest. The lender charges $250 for an origination fee (which is added to your loan amount). What is your APR?

4. Todd buys a car for $18,000. He must also pay tax and license fees of $1,200. He borrows $17,000 for 4 years at 7.25% interest, with monthly payments. What is the total cost of the car, to the nearest dollar?

Mathematics
1 answer:
Nat2105 [25]3 years ago
4 0
1. Using "exact" interest, your charge will be
.. I = Prt
.. I = $855.28*0.154*(31/365)
.. I = $11.19

2. It will take 52.01 months to pay off the loan.

3. Your payment on 15,250 for 4 years will be $363.41. The effective interest rate that payment represents on a loan of $15,000 is 7.604%

4. Todd's monthly payments will be $409.06, so his total outlay will be
.. tax+license + down payment + loan repayment
.. = 1200 +1000 +48*409.06
.. ≈ $21,835

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