Financial Algebra Highschool:

Example 1

What is the monthly payment for a $4,000 two-year loan with an APR of 8.50%?

Check Your Understanding 1:

Juan is borrowing $41,000 for 5 years at an APR of 6.5%. What is the monthly payment?

Example 2

What is the total amount of the monthly payments for a $8,000, 4 year loan with an APR of

6.75%?

Check Your Understanding 2:

What is the total amount of the monthly payments for a $7,000, 3-year loan with an APR of

7.25%?

Example 3

Find the finance charge for a $4,000, two-year loan with an 8.5% APR.

Check Your Understanding 3

Find the finance charge for a $25,000, three-year loan with a 9.25% APR. How much interest is

paid?

Example 4

Bart needs to borrow $7,000 from a local bank. He compares the monthly payments for a 9.75%

loan for three different periods of time.

a. What is the monthly payment for a one-year-loan?

b. What is the monthly payment for a three-year-loan?

c. What is the monthly payment for a five-year-loan?

Check Your Understanding 4

Melissa wants to check the accuracy of the finance charge on her promissory note. She has a

$6,000, four-year loan at an APR of 10%.

a. What is the monthly payment?

b. What is the total amount of the monthly payments?

c. What is the finance charge?