Credit Payment Calculations

Total: $32$ marks

Note to Students: Have you been adding definitions and examples to your resource

sheet as you completed the last two lessons? Remember that your resource sheet should

contain information that you find helpful, and it does not need to have the resource

sheet icon beside it$.$

For questions that include taxes, PST $=7\%$ and GST $=5\%.$

Bea Fehr requires a personal loan to purchase appliances that cost $$5000.$ She meets

with the loan officers of two financial institutions. Institution A offers her a fixed

interest rate of $9\frac{3}{4}\%$ for a three$-$year loan; Institution B offers her a fixed interest rate

of $11\frac{1}{2}\%$ for a three$-$year loan.

a$)$ How much will Bea pay Institution A each month? $(3$ marks$)$

b$)$ How much will Bea pay Institution B each month? $(2$ marks$)$

c$)$ With which financial institution will Bea pay more each month? How much more

will she pay? $(1$ mark$)$

d$)$ What is the difference in interest over the three years between the two financial

institutions? $(4$ marks$)$