Installment Loans Answers

You have just taken out a $2,560 loan from your local bank. You paid off the loan in 1 year with a total interest charge of $300.00. Determine, from the information given, the amount of your monthly payment if you pay off the loan in 12 months. Round your answer to the nearest hundredth of a cent.

You purchase a new mountain bike for $1,575. You put a 10% down payment and $65.56 per month on a 24 month purchase plan. Determine the total finance charge.

You have just taken out a $2,650 loan from your local bank. You paid off the loan in 1 year by making 12 monthly payments with a total interest charge of $300.00. Determine, from the information given, the annual percentage rate (APR). Round your answer to the nearest hundredth of a percent.

# of Monthly PaymentsAnnual Percentage Rate (APR) 10%11%12%13%14%15%16%17%18%177.678.459.2410.0310.8211.6212.4213.2314.04188.108.939.7710.6111.4512.2913.1413.9914.85Your friend just purchased a new hybrid for $25,236. She received $3,110 for her trade in and used that money as a down payment for the new hybrid car. She financed the vehicle at 12% APR over 48 months. She received a stipend from school and paid off the loan after making 30 payments. Use the actuarial method formula and the table above to determine the amount of unearned interest given that her monthly payment is $582.74.

# of Monthly PaymentsAnnual Percentage Rate (APR) 11%12%13%14%15%16%17%18%19%115.586.106.627.147.668.188.709.229.49126.066.627.187.748.318.889.4510.0210.59Above is a table that gives the interest per every $100 financed. Use the table to determine the annual percentage rate for a 12 month loan that charges $8.31 per every $100 financed.

# of Monthly PaymentsAnnual Percentage Rate (APR) 11%11.5%12%12.5%13%13.5%14%14.5%15%3517.3518.1819.0119.8520.6921.5322.3823.2314.083617.8618.7118.5720.4321.3022.1723.0423.9224.80Above is a table that gives the interest per every $100 financed. Use the table to determine the annual percentage rate for a 36 month loan that charges $24.80 per every $100 financed.

Your local T-Spirit store is having a sale on the latest i-razpod cell phone. The store is also offering financing to those who qualify. The new cell phone is on sale for $150.00 with a two year contract. The sales associate informs you that the closed-end installment loan offered by the store is a 24 month installment plan with monthly payments of $8.44. Determine the finance charge (interest) of the installment loan.

You purchase a new LCD monitor for $1,351. You put a 8% down payment and $59.56 per month on a 24 month purchase plan. What is the amount of the down payment?

You have decided to purchase a new stereo system made by Ownur 3ar5. Your local audio store has the company’s latest stereo and is offering a 36 month installment plan to finance the computer. The store requires no down payment. The salesperson tells you that you can finance the stereo with 36 monthly payments of $52.31. Determine the total amount paid.

You purchase a new living room set for $1,275. You put a 5% down payment and $75.76 per month on a 24 month purchase plan. Use the APR formula to determine the annual percentage rate to a tenth of a percent.