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1. A friend loans you $150 and asks you to pry them back a total of $160 two weeks later, a. Your friend says that

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1. A "friend" loans you $150 and asks you to pry them back a total of $160 two weeks later, a. Your friend says that $10 ian't that much to pay for a loan. What percentage is $10 of $150 ? b. The interest pald back was after two weeks. What is the equivalent annual percentage rate fyou can assume that a year is 52 weeks longl? 2. Assume you borrowed $150 on a credit card that charges 20x simple interest. How much would you owe after two weeks? is your ftiend in problem 1 being fair, or would you be better off to use a credit card? Use this information for Problems 3 through 5. You buy a car for $28,000. You get a loan for 5 rears with an APR of 6.588 simple interest. 3. How much will you pry total for the car? 4. You look at your saifess and decide that you can make a down payment of 54,000 , reducing the'dmount you need to borrow to $24,000. Hew much will you end up paying total for the car in this case? 5. The lean is paid back in 60(5,12) equal monthly payments. a. How much will you pay each month if you don't make the down payment? b. How tnuch will you pay each month if you do make the down payment? 6. You take out an unsubsidized student loan for $25000 at an interest rate of 4.59. The interest accumulates while you're in school, compounding monthily. How much will you owe after 4 years? 7. Your credit card charses 23.4X interest, eompounded monthly. If you put $1500 on the card and don't make any payments, how much will you cwe after 6 months'? Use this information for problems 8-9. You have an investment account which pay interest at an APR of 7K busch of late foes weili lsorere that for the preblem. total for the car in this case? 5. The loan is paid back in 60(512) equal monthly payments. a. How much will you pay each month if you don't make the down payment? b. How much will you pay each month if you do make the dowa payment? 6. You take out an unsubsidiaed student loan for $25000 at an interest rate of 4.99. The Interest aceumulates while you're in school, compounding monthly. How much will you owe after 4 years? 7. Your credit card charges 23.4% interest, compounded monthly. If you put $1500 on the card and don't make any payments, how much will you owe after 6 months'? Use this information for problems 8-9. You have an investment account which pays interest at an APR of 7x. bunch of late foet well lgrare that for this preblem. 8. If you deposit $4,000 in the sccount, using simple interest, how long will it be until there is $10,000 in the account? 2. If you deposit $4,000 in the account, using interest compounded monthly, how long will It be until there is $10,000 in the account? 10. You have $2400 that you want to put in an account to save. You'd like to have $4000 in 5 years. a. If you depost the money in an account which pays simple interest, what APR would you need to have 55000 in 5 years? b. If you depost the moncy in an account which compounds manthly, what APR would you need to have $5000 in 5 years

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