Loan Review

Tommy is obtaining a $3390 loan to purchase items for remodeling his workshop. His interest rate is 7.1% ordinary interest for 215 days. How much interest will Tommy owe? What is the maturity value of his loan?

• $141.78

• $1417.76

• $143.75

• $20.06

Mary has a hair salon that is in need to some new equipment. She has decided to obtain a loan for $8345 with an interest rate of 4.5% exact interest for 275 days. How much interest will Mary owe? What is the maturity value of her loan?​ (a)   ​ (b)  

• $282.93
• $286.86
• $31.29
• $8627.93
• $$8631.86
• $8376.29

Herb and Marci obtained an installment loan that has an 8.1% APR to purchase a new vehicle for $48,599. They agree to make a 2.1% down payment and to make payments for 7 years. A. How much is the down payment on their vehicle?

B. How much will their loan be for?$

C. How much will their monthly payment be? _____

D. How much is their finance charge? _____

F. How much of their first monthly payment is going to the principal? _____

After making the 72nd payment, their balance on their loan is $8,547.63. What will be their final payment if they pay their loan off on the 73rd payment?

By paying off their loan with the 73rd payment, they will save _____ in interest.

With each monthly payment on an installment loan, the percentage of your payment allocated to principal _______________.