Simple Interest

Question 1

Which would be considered closed-end credit situations? Check all that apply.

Revolt · Accepted Answer

A: Jason bought a used car and got a loan from his credit union.; B: The Overtons bought a new home and mortgaged it for 30 years.; D: Tammy borrowed $40,000 in school loans to be paid back in 5 years.

Question 2

Jason has a credit card that charges 2% interest on unpaid balances each month. He spent $300, but only makes the minimum payment of $30 a month when the bill is due. What is the balance on his credit card account after making his payment at the end of the fourth month?

Revolt · Accepted Answer

A: $201.08

Question 3

How much will Ava save immediately if she uses the credit card and pays the balance during the billing cycle? How much will Ava pay in interest if she pays back the card in 11 months?

Revolt · Accepted Answer

B: $10

Question 4

The Lagan family bought a $150,000 home in 2002. They obtained a mortgage loan for 30 years. The monthly payments, not including property taxes and insurance, are $895.00. Assuming these monthly payments do not change, how much interest will be paid on the house during the 30 years?(Monthly Payment)(12 months per year)(30 years)(895)(12)(30) = $322,200 total amount paid (principal and interest)

Revolt · Accepted Answer

C: $172,200 of interest

Question 5

Mr. Winkler needs to make ⇒ 3 more payments.

Revolt · Accepted Answer

12

Question 6

It will take Cody 3 months to save up enough money to purchase a stereo. He has a credit card with a 12% interest rate. Cody’s friend Mark says it will cost Cody less money if he saves for 3 months instead of using the credit card. Is Mark correct?

Revolt · Accepted Answer

Mark is correct. If Cody uses the credit card, he will have to pay interest during each month in which he does not pay off the balance of the card. If he saves money, he will not have to pay interest.

Question 7

Candice wants to buy a $2500 scooter with a loan from her local bank. Which loan option would be best for Candice if she wants the lowest interest rate and wants to pay off the scooter within 5 years.

Revolt · Accepted Answer

A: Loan option 1 will take less than 4 years to pay off and have an annual interest rate of 15%, and total interest of about $700.

Question 8

What is the total amount of interest Shelby will pay for the car loan? How many more years will it take Shelby to pay off her loan?

Revolt · Accepted Answer

B: $2478.58

Question 9

How much will Ava pay in interest if she pays back the card in 11 months?

Revolt · Accepted Answer

C: $13.06

Question 10

Check each statement included in your response.

Revolt · Accepted Answer

A: Mark is correct.; B: Credit cards charge interest on unpaid balances.; C: Paying cash has no interest.

Simple Interest Answers

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Simple Interest Answers

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TRY EDGENUITY HACKS