Business math - consumer credit

1. cash price = installment price + finance charge

True or False

2. Find the amount financed if a $100 down payment is made on a TV with a cash price of $600

a. $100 b. $500 c. $600 d. $400 e. None of the above

3. Find the monthly payments when the installment price is $2300, a downpayment of $400 is made, and there are 10 monthly payments.

a. $190 b. $190.33 c. $158.00 d. $158.33 e. none of the above

4. An bowling alley is financed at a total cost of $3000 including a down payment of $250. If the bowling alley is financed over 50 months, find the monthly payments

a. $89.88 b. $55.00 c. $50.00

6. Find the finance charge on an item with a cash price of $500 if the total of all installment payments is $600 and $10 down payment was made

a. $110 b. $34 c. $100 d. None of the above

5. The amount finance is the installment price minus or less than the down payment

True or False