ch. 9 questions 20-31

20. In calculating an APR for Truth in Lending purposes, lenders may use a 360-day year. (T or F) Name For Problems 21-24, consider a loan in which you borrowed $18,000 at Class 9.5% interest for 120 days. The lender uses a 365-day year. 21. How much interest will you owe on the maturity date? ANSWERS 20. 22. Assume you pay the loan off early, in 72 days. How much interest will you owe? 21. 22 23. Assume instead you have some extra cash and pay $12,000 on day 28 (28 days after getting the loan), then the balance on day 72 (72 days 23. Day 28: Int after getting the loan). Fill in the blanks. Princ Day Total number payment Interest Principal Balance Bal 0 18,000.00 28 12,000.00 Day 72: Total 72 0.00 Int Totals Princ Bal 24. How much interest do you pay under each situation: Problem 21, Problem 22, and Problem 23? Total paid Unit 9.2 Solving for principal, rate, and time Total interest For problems in this unit, if the answer is a percent, express the answer to the nearest hundredth of a percent. Total principal 25. Explain how you could modify the simple interest formula I = PRT to get a formula designed to solve for R. 24. Problem 21 For Problems 26-29, find the missing value. Problem 22 Problem 23 26. $8,000 0% 8 months 25. 27. $56.75 7.5% 2 months 28. $1,858.50 $35,400 months 29. $825 $6,000 1% 26. 30. You open a checking account. You are paid 4% interest on the average 27 . balance but are charged a $7 monthly charge. Assuming that interest is paid monthly (regardless of the number of days in the month), calculate 28 . the average daily balance you must maintain to offset the $7 monthly charge. 29. 30. . A supplier charges 15% interest on past-due accounts. Interest on an 31. $812 account is $16.35. For how many days must the account have been overdue? 34 Homework Assignments