Borrowing Money Answers

Chelsea made monthly payments for four years before her $13,440 loan was paid off. The loan had an interest rate of 5.86%, compounded monthly. Chelsea paid $156.60 in service charges. To the nearest tenth, what percentage of the total cost of the loan did her finance charges comprise? Round all dollar values to the nearest cent. a. 13.6% b. 10.9% c. 9.4% d. 11.9% Please select the best answer from the choices provided

Dahlia is trying to decide which bank she should use for a loan she wants to take out. In either case, the principal of the loan will be $19,450, and Dahlia will make monthly payments. Bank P offers a nine-year loan with an interest rate of 5.8%, compounded monthly, and assesses a service charge of $925.00. Bank Q offers a ten-year loan with an interest rate of 5.5%, compounded monthly, and assesses a service charge of $690.85. Which loan will have the greater total finance charge, and how much greater will it be? Round all dollar values to the nearest cent.a.Loan Q’s finance charge will be $83.73 greater than Loan P’s.b.Loan Q’s finance charge will be $317.88 greater than Loan P’s.c.Loan P’s finance charge will be $20.51 greater than Loan Q’s.d.Loan P’s finance charge will be $234.15 greater than Loan Q’s.

Dana just finished paying off the $15,400 loan she took out four years ago. The loan had 6.68% interest, compounded monthly. If Dana paid a total of $18,321.60, how much did she pay in service charges? a. $730.08 b. $366.49 c. $1,028.72 d. $266.76 Please select the best answer from the choices provided

Megan took out a loan of $85,600 at an interest rate of 11.5%, compounded monthly. She paid off the loan in full over the course of exactly twelve years. Assuming that Megan made the same payment every month for twelve years, what was her monthly payment?a.$1,125.03b.$629.52c.$1,098.52d.$820.33

Travis took out a six-year loan with a principal of $15,000. He made monthly payments of $225 for the entire period, at which point the loan was paid off. How much did Travis pay in interest?a.$1,200b.$1,350c.$800d.$0

How does Truth-in-lending benefit consumers when shopping for a loan?a.Truth-in-lending allows consumers to be frank with the lenders and talk about very personal things.b.Truth-in-lending requires all lending institutions to eventually convert all of their loans to fixed interest rates. c.Truth-in-lending requires consumers to admit whether or not they can actually afford the loan they’re applying for. d.Truth-in-lending allows consumers to know every cost that is associated with the loans they research and apply for, and helps them reach the optimal decision.

Jocelyn is considering taking out one of the two following loans. Loan H is a three-year loan with a principal of $5,650 and an interest rate of 12.24%, compounded monthly. Loan I is a four-year loan with a principal of $6,830 and an interest rate of 10.97%, compounded monthly. Which loan will have the smaller monthly payment, and how much smaller will it be? Round all dollar values to the nearest cent.a.Loan H's monthly payment will be $42.46 smaller than Loan I's.b.Loan H's monthly payment will be $140.79 smaller than Loan I's.c.Loan I's monthly payment will be $11.88 smaller than Loan H's.d.Loan I's monthly payment will be $26.98 smaller than Loan H's.

Say you take out a loan with a principal of $44,500. The interest rate is 13.11%, compounded monthly. If you make consistent monthly payments and pay off the loan over the course of six and a half years, how much interest will you have paid in total? Round dollar amounts to the nearest cent.a.$21,849.92b.$3,018.03c.$20,003.60d.$24,321.18

Sam is paying off his eight-year, $15,360 loan in semiannual installments. The loan has an interest rate of 9.58%, compounded semiannually, and a service charge of $1,294.64. Once the loan has been fully paid off, what percentage of the total finance charge will the service charge be? Round all dollar values to the nearest cent. a. 5.48% b. 8.43% c. 18.55% d. 15.65% Please select the best answer from the choices provided

Which of these best fits the definition of interest, as it applies to finance?a.Interest is the money earned by investing.b.Interest is the cost of borrowing money.c.Interest is the cost of investing poorly.d.Interest is the portion of a loan which must be repaid every year.