MTH 115 Lesson 8 Practice Problems
Answer Key
1. A credit card charges 23% APR and a minimum of 2.5%. If you pay the minimum on a balance of $450 what would the decrease in your balance be? Round to the nearest cent $2.63.
2. A month has 30 days in it. You post a payment of $600 on the 15th of the month. The Balance was $2000 before the payment. What is the interest on the average daily balance if the APR is 23%? $32.58
3. The monthly payment on a house loan is $876. The purchase price of the house was $125,000. If you pay this for 30 years how much interest did you pay? $190,360
4. A house costs $275,000. The rate is 7.3% with monthly payments for 30 years. What is the payment? Round to the nearest dollar. $1885