1. Use the United States Rule and/or the Banker's Rule to determine the balance due on the loan at the date of maturity. The effective date is the date the loan was written. A day counting table may be found in the Consumer Mathematics chapter of your textbok.

Principal: $12,000.00 Rate: 9.5% Effective Date: March 22 Maturity Date: December 5 Partial Payment Amount: $7,000.00 Partial Payment Due: August 30

		$5,127.99
		$5,478.74
		$5,614.52
		$5,650.87

2.

Reggie King took out a 36-month fixed installment loan of $26,000.00 at 8.5% APR to open a sporting goods store. He began making monthly payments of $820.73. Reggie's business does better than expected and a split second after making his 24th payment, Reggie decides to repay his loan in full. What is the total amount due to pay off the balance. Use the actuarial method.

If you use the Finance Charge Table 11.2, page 632, and the "unearned interest formula", page 635, in your textbook to solve this problem, the result will match exactly with one of the answers. If you use a spreadsheet to do the computation, your result will not match exactly with any of the answers, but it will differ only very little (mostly less than $1) from the "correct" answer.

		$9,389.85
		$9,410.28
		$9,479.84
		$10,231.01.

3.

A landscaping company buys a new bulldozer for $61,000.00. The company makes a down payment of $15,000.00 and finances the balance at 6.0% APR over 60 months. The monthly payment is $889.33. A split second after making the 12th payment, the company owner decides to pay the remaining balance on the loan. What is the total amount due to pay off the balance? Use the actuarial method.

If you use the Finance Charge Table 11.2, page 632, and the "unearned interest formula", page 635, in your textbook to solve this problem, the result will match exactly with one of the answers. If you use a spreadsheet to do the computation, your result will not match exactly with any of the answers, but it will differ only very little (mostly less than $1) from the "correct" answer.

		$31,418.37
		$33,772.15
		$37,867.33
		$44,784.81