!
Name
K u,
T
Consumer
Math
-
Final Exam Review
Chapter 8
Answer all questions below.
Single-Payment loans
-
These are loans where you borrow money and repay with one payment at a
specified time; perhaps 3 months, maybe 6 months. These loans are either based ordinary interest (360
days pe.r year) or exact interest (365 days per year).
Interest = Principal x
x
Exact Interest -- Princfpal
L.
Tfme
x
Rate
Rate
7rdinary Interest = Prtnci.pal x
* *365
Rate
Maturtty Value = Prtncipal
*
* *360
Interest
Anita's bank granted her a single-payment loan of 57,200 for 91 days to pay for new
merchandise. Determine the interest and
value of the loan if the rate is:
949ti!Y
a.
6% ordinary interest.
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b.
6%oexactinterest.
tnli"rt-
+1,2oo
/t1a1"n13 \Atrc
n
=
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joq,
,ob -*
ltol .7o
ra,?oo+ Dlo7,4o
Parker borrowed 54,750 in a single-payment loan that must be repaid in 120 days for his hobby
shop. Determine the interest and maturity value of the loan if the rate is:
a. 4.5o/o ordinary interest.
ln/ercst, n '/,7 5o
x,0{Srffitlo
$
Il4ato.rly Val,r,ra; $q,aSo + $?l
7l ,15
,rS:
lt"1.
aS
b. 4.5% exact interest.
lnhro sf =
ifa{ar;t1
Iyr7so { .ottt * !?o-
Vattrt_
,
7bs
f
4,Tso
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f Vo. a4
r rfu,a7
Noah borrowed 58,500 for his upstart business as a single-payment loan. What is his loan's
maturity value if he has an exact interest loan and must repay in 45 days?
lnhro;
t
= d 9,f00 x,'07
"*
+
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i 7z .zb
tfltrhr,, VaU,a= {8, -,oo +673,36@
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Amount Financed - The amount you finance can be found by how much you need to borrow to pay for
something minus any down payment you make. We can also find the down payment if we know what
percent a down payment may need to be.
Amount Financed = Cash Pri.ce
- Down Payment
4. Trudy is purchasing gym equipment
Down Payment = Cash Price x Percent
for 51,299. She makes a Sfgg down payment and finances
the remainder. How much does shgJinance-?._
f l,lq?5.
?rq rQ-lrD
Roslyn purchased a previous owned piano for 51,650. She made a 20% down payment. What
was the dollar amount of the down
she finance?
{l,frSO xeo2o, ! zlo Dow, f,
a l,za9
A',rt- Finanu) ? S 1,650 - s 33o
6. Antonio purchased an antique chest for 5937.50. He made a 30% down payment. What was
thedollaramountofhisdownpayment?Howmuchdidhefina
i)ourn Po"yrr.arr\
Arrn-Finon,ed
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=
= fiq77.5o-
$r8
W
l,a5 =@
Monthly Payment Allocation - when paying off a loan that has a monthly payment we can calculate
how much of our payment is going towards interest and how much is paid towards the remaining
balance. lf we use our generic interest (interest = principal x rate x time) formula we can calculate our
next payment's interest based on how much remaining money we owe.
7.
Complete the following table. 5L,5O4.92x8/oxlLlLzl = 510.03 lnterest for the next payment.
S307.08 - lnterest = Amount for Principal.
Payment
Number
Repayment Schedule for a $1,800 Loan at8%
Amount
Amount
Payment
for lnterest
for Princioal
Monthly
7
S307.08
Srz.oo
2
S307.08
Sro.oE
3
s307.08
s307.08
Sgoz.oa
S307.08
4
5
6
s
fr.oS
5 ln.Ob
s q,os
s 2,07
s29s.08
New Principal
St,8oo.oo
S1,504.92
aav,B-12qV.oy s l,'qoB,,
s eqq.03 s
-fiq
S 3etl,o) $ b\v,fra
S bo3,OZ S 3o rl,'V9
S 3o5,oS
S
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