Chapter 7 and 8 Review

The original sum of money borrowed is called the

• principal.

• collateral.

• lien.

• installment.

Tags

CCSS.7.RP.A.3

The length of time that money will be borrowed is the

• ordinary interest period

• principal period

• amortization period

• term

A down payment

• increases the risk to the lender.

• is the portion of a purchase which the borrower pays up front.

• is the same as an early loan repayment.

• must be at least 10%.

Tags

CCSS.7.RP.A.3

Pawnshops

• can buy personal property but cannot sell it.

• offer loans that require collateral.

• offer loans that do not require collateral.

• are another name for payday lenders.

11. Cheyenne checked her department store credit account balance online and learned that it was $108.38. Afterward, she made a purchase in the amount of $117.42. If her credit limit is $800, what is Cheyenne’s remaining available credit on this account?

Tags

CCSS.7.NS.A.3

13. Sandra has a credit card with an APR of 24.7%. What is her monthly periodic rate? Round to the nearest ten-thousandth (0.0001) if necessary.

Tags

CCSS.7.RP.A.3

13. Ian has a credit card that charges a 2.75% fee for a cash advance. Because of a family emergency, he decided to get an $800 cash advance. What is the fee that Ian will pay for the cash advance? Round to the nearest cent ($0.01) if necessary.

Tags

CCSS.7.RP.A.3

17. Fatima has a credit card with a nominal APR of 22.1%. The interest on unpaid balances compounds daily. What is the EAR?

17. Marquez, who works as a technical writer for a software company and earns $66,240 per year, made a list of his current debt payments per month, which is shown as follows. What is Marquez’ debt-to-income ratio?

    mortgage = $1,189.46

    car loan = $435.08

    student loans = $214.96

Tags

CCSS.7.RP.A.3

11. Derek borrowed $2,150 using the exact interest method. He will pay an annual interest rate of 5.29% and will repay the loan in 58 days. Calculate the total amount that Derek will pay back when he repays the loan.

Tags

CCSS.7.RP.A.3