Installment Buying Worksheet
Section 11.4
Compute the monthly payment, rounded to the nearest cent, for each of the following
purchases. In each case, assume that interest is compounded monthly (12 times per
year).
Item
Amount
Financed
Interest
Rate
Finance Time
1.
New Car
$16, 347
6.2%
5 years
2.
Laptop computer
$1,263
8%
24 months
3.
Used Car
$4,200
7.4%
1 year
4.
Washer and Dryer
$845
12%
12 months
5.
New Luxury Automobile
$84,000
6%
5 years
6.
Big House
$250,000
5.8%
30 years
7.
Little House
$60,000
6.4%
15 years
8.
Second Mortgage
$40,000
6.26%
10 years
Monthly
Payment
Find each of the following; determine the “missing” number from the given information.
Assume the loans are compounded monthly.
Item
9.
Amount
Financed
New Car
10. Laptop computer
Interest
Rate
Finance Time
Monthly
Payment
6.25%
5 years
$530
10%
12 months
$120
11. Used Car
$10,600
6.525%
12. New Washer
$634
1 year
$55
13. New Car
$34,000
5 years
$660
Fall 2013
$325