1. Dave borrowed $600 on January 1, 2006, and paid it all back at once on December 31, 2006. The bank charged him a $6.40 service charge and interest was $44.90.

What was the APR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Annual percentage rate

%

2. Dave borrowed $1,280 on January 1, 2006, and paid it all back at once on December 31, 2006. The bank charged him a $6.50 service charge and interest was $44.70. What was the APR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Annual percentage rate %

3. Dave borrowed $500 for one year and paid $50 in interest. The bank charged him a $5 service charge. What is the finance charge on this loan?

Finance charge

$

4. Dave borrowed $500 on January 1, 2006. The bank charged him a $5 service charge and interest was $50. If Dave paid the $500 in 12 equal monthly payments, what was the APR? (Enter your answer as a percent rounded to 1 decimal place.)

Annual percentage rate

%

5. Sidney took a $200 cash advance by using checks linked to her credit card account. The bank charges a two percent cash advance fee on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived.

(a)	What was the cash advance fee?

Cash advance fee

$

(b)	What was the interest for one month at an 18 percent APR?

Interest

$

(c)	What was the total amount she paid?

Total amount

$

6. You have been pricing a compact disk player in several stores. Three stores have the identical price of $300. Each store charges 18 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C uses the previous balance method. Assume you purchased the disk player on May 5 and made a $100 payment on June 15.

What will the finance charge be (for June) if you made your purchase from store A? From store B? From store C? (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

	Finance Charge
Store A	$
Store B	$
Store C	$
Damon convinced his aunt to lend him $2,000 to purchase a plasma digital TV. She has agreed to charge only 6 percent simple interest, and he has agreed to repay the loan at the end of one year. How much interest will he pay for the year?

Interest amount	$
7. Damon convinced his aunt to lend him $2,000 to purchase a plasma digital TV. She has agreed to charge only 6 percent simple interest, and he has agreed to repay the loan at the end of one year. How much interest will he pay for the year?

Interest amount

$

8. Rebecca wants to buy a new saddle for her horse. The one she wants usually costs $500, but this week it is on sale for $400. She does not have $400, but she could buy it with $50 down and pay the rest in 6 months with 10 percent interest. How much will Rebecca save or lose by buying the saddle this week? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Amount saved

$

9. Your uncle lends you $3,700 less $148 (interest at 4 percent), and you receive $3,552. The loan is for one year and will be repaid in one lump sum at the end of the year. Use the APR formula to find the true annual percentage rate. (Enter your answer as a percent rounded to 3 decimal places.)

Annual percentage rate

%

10. Your uncle lends you $3,400 less $102 (interest at 3 percent), and you receive $3,298. The loan is for one year and will be repaid in one lump sum at the end of the year. Use the APR formula to find the true annual percentage rate. (Enter your answer as a percent rounded to 3 decimal places.) Annual percentage rate %