Chapter 3, Lessons 1 and 2 Rreview

Suppose that your credit card calculates your payment using an APR of 23.4%. How much more will you pay if you charge your credit card $200 and you pay it off at the end of the first month than paying $200 cash?

• $2.34

• $3.90

• $0.25

• $1.00

Ensor has a balance of $4,800 on his credit card. He negotiates with his bank to pay it off in 2 years with an APR of 4.25%. If he pays the same amount each month, what is his monthly payment?

• $263.88

• $409.27

• $2,412.76

• $208.97

Monique purchases a $5,100 dining room set. She can’t afford to pay cash, so she uses the
installment plan, which requires an 18% down payment. How much is the down payment?

• $918

• $9,180

• $91.80

• $9.18

oe wants to purchase an electric keyboard. The price of the keyboard at Macelli’s, with tax, is
$2,344. He can save $150 per month. How long will it take him to save for the keyboard?

• 14 months

• 16 months

• 15 months

• 17 months

Lisa purchases a professional racing bicycle that sells for $3,000, including tax. It requires a
$200 down payment. The remainder, plus a finance charge, is paid back monthly over the next
2.5 years. The monthly payment is $111.75. What is the finance charge?

• $425.75

• $550.75

• $552.50

• $475.85

Depot Headquarters has a new promotional payment plan. All purchases can be paid off on the
installment plan with no interest, as long as the total is paid in full within 12 months. There is a
$25 minimum monthly payment required. If the Koslow family buys a hot tub for $4,355, and
they make only the minimum payment for 11 months, how much will they have to pay in the
12th month?

• $3,750

• $3,500

• $4,100

• $4,080

Cecilia bought a new car. The total amount she needs to borrow is $29,541. She plans to take out
a four-year loan at an APR of 6.3%. What is the monthly payment?

• $697.84

• $978.46

• $784.69

• $846.97