Question

You found your dream home! The down payment is $27,000. However, you still need 40% of the down payment plus required improvements will cost another 18% (First: what total % of the down payment do you need? _____). You borrow the money from your Savings & Loan, but you must pay it back within 10 years at an interest rate of 14%.

1) Calculate the amount you need to borrow your Savings & Loan.

Using this amount as your principal P, calculate the future value A using:

2) Simple Interest

3) Compound Interest (paid quarterly n = _____))

4) Compound Interest (paid daily n = _____))

5) Continuous Interest

6) You started a simple interest savings account with $5,000. In 37 years, the account grew to $11,700. What is the interest rate?

JW bought a new boat for $117,600. The seller is giving 11% off. The sales tax on large purchases in his city is 7.85%. The bank is requiring a 19% down payment to secure the loan.

7) How much is the discount?

8) What is the discounted cost?

9) What is the amount of tax for his purchase?

10) What is the discounted cost with tax?

11) What is the amount of the down payment?

12) How much of the cost has to be financed?

13) JW puts the down payment on his credit card at 24.4% interest for 3 years. What is the monthly installment payment?

14) Bank Z finances the purchase with a 5-year loan at 7.5% interest. How much is the monthly installment payment?

Answer 1