7. Loans and Financing: a. Ken and Marcy plan to have their kitchen remodeled at a cost of $6,000. The carpenter

suggests that they pay $600 down, followed by 18 monthly payments of $325. What is the finance charge for this payment schedule?

FINANCIAL LITERACY ASSIGNMENT

b. Trevor asks his bank for a loan of $22,000 to add a guest room to his house. His bank offers financing at 7.25% compounded monthly, for a term of 5 years, payable monthly. What is Trevor's monthly payment?

N= I% = PV = PMT = FV = P/Y = C/Y = PMT: END BEGIN

c. Kawai requires a loan of $33,000 to buy a used sport utility vehicle. His banks offers financing at 6.75% compounded monthly, for a term of 6 years, payable monthly. What is the total cost of this loan?

N= I% = PV = PMT = FV = P/Y = C/Y = PMT: END BEGIN

FINANCIAL LITERACY ASSIGNMENT

d. Huan accepted an in-store loan on a computer she just purchased. The monthly payment is $64.53 on the $2,000 computer with a 12% APR for 3 years. Determine the portion of the monthly payment that will go towards interest and principal for the first two months.