1. Rebecca wants to borrow $5,000 for 4 years. She will repay the debt, plus the finance charges in one lump sum at the end of the 4-year period. If the lender charges her 7% simple interest, how much will Rebecca pay in finance charges?

-$960

-None of the above

-$800

-$1400

2. Poindexter was approved for a $10,000, 6%, 5 year loan with finance charges computed using the declining balance method. What will be Poindexter's monthly payments? [Hint: use the PVA formula. Don't forget, you want to enter the monthly payments.]

3. Poindexter's APR will be:

-Greater than 6%

-Less than 6%

-Equal to 6%

-Not enough information to answer