Question

QUESTION 1

Imported Asset

Marta borrowed $1,380 for 15 months at 13 percent APR. What will be Marta's monthly payment?

A. $101.17

B. $96.76

C. $117.56

D. $106.95

QUESTION 19

Use the table of interest.
Imported Asset

Andrea borrowed $2,240 at 15 percent APR for 18 months. How much interest will she pay?

A. $336
B. $504
C. $448
D. $490

QUESTION 2

Use this table to find the monthly payment.
Imported Asset

Mark borrowed $5,500 at 11.5 percent for five years. What is his monthly payment?
A. $131.50
B. $173.50
C. $120.95
D. $150.22

Answer 1

1) (D)

2) (B)

3) (C)

Explanation:

1) Amount borrowed = $1380 (P)

APR =13% or 0.13 (R)

Time = 15 months (T) = 15/12

Interest amount =
`(P*R*T)/(100)`

=
`(1380*13*15)/(1200)`

= $224.25

Total amount = 1380+224.25

= $1604.25

Monthly payment = 1604.25/15 = $106.95 (D)

2) Amount borrowed = $2240

APR = 15% or 0.15

Time = 18 months

Interest =
`(P*R*T)/(100)`

=
`(2240*15*18)/(1200)`

= $504 (B)

3) Amount borrowed = $5500

APR = 11.5% or 0.115

Time = 5 years

n= 12 (compounded monthly)

M =
`(P)/((1-(1+r/n)^(-nt))/(r/n) )`

=
`(5500)/((1-(1+(0.115)/(12) )^(-60))/((0.115)/(12)) )`

= $120.95 (C)