Course : Quantitative Reasoning

Topic : Interest & Installment Buying

If someone purchase a $2,400 item and pay for it with monthly installments for 2 years, the monthly payment is________.

Options :

A ) More than 100 per month

B) 100 per month

C) less than 100 per month

Use estimation to select the best response.

If someone's credit card balance is $650 and the interest rate is 12%, then the credit card interest charge is _______

Options :

A. $8.25

B. $65

C. $6.50

D. $82.50

Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. $600 balance, 14%, $100 payment, adjusted balance method.

Options :

A.$6.14

B. $5.83

C.$7.00

D. $4.60

E. $3.50

Make a 6% offer on a Chevrolet Corsica that has a sticker price of $14, 664 and a dealer cost of $13,705

Options:

A. $14,527

B. $14,185

C.$13,784

D. 14,322

E. $14,048

Find the APR (rounded to the nearest tenth of a percent) for the loan. Purchase a living room set for $3,600 at 8 % add- on interest for 3 years.

Options:

A. 10.7%

B. 7.8%

C. 15.6%

D. 14.0%

E. 17.1%

Use estimation to select the best response.

If someone wishes to purchase a car with a sticker price of $10,000, a reasonable offer to make to the dealer is $________

Options :

A. $11,000

B. $10,000

C. $9,000

D. $11,500