Question
8. Sidney took a $150 cash advance by using checks linked to her credit card account. The bank charges a 2 percent cash advance fee
8.
Sidney took a $150 cash advance by using checks linked to her credit card account. The bank charges a 2 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? (Round your answer to 2 decimal places.) |
Cash advance fee | $ |
b. | What was the interest for one month at an APR of 16 percent? (Round your answer to 2 decimal places.) |
Interest | $ |
c. | What was the total amount she paid? (Round your answer to 2 decimal places.) |
Total amount | $ |
d. | What if she had made the purchase with her credit card and paid off her bill in full promptly? Assume the credit card has a grace period. (Round your answer to 2 decimal places.) |
Amount paid | $ |
9.
What are the interest cost and the total amount due on a six-month loan of $1,200 at 13 percent simple annual interest? |
10.
After visiting several automobile dealerships, Richard selects the car he wants. He likes its $13,500 price, but financing through the dealer is no bargain. He has $2,700 cash for a down payment, so he needs an $10,800 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $10,800 for a period of five years at an add-on interest rate of 11 percent. |
a. | What is the total interest on Richards loan? |
Total interest | $ |
b. | What is the total cost of the car? |
Total cost | $ |
c. | What is the monthly payment? |
Monthly payment | $ |
d. | What is the annual percentage rate (APR)? (Enter your answer as a percent rounded to 2 decimal places. |
APR | % |
Interest cost | $ |
Total amount due | $ |
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