i need to solve each problem in each page please from 1 to 19
and the instruction to solve these problems is on the side of each page
LEARNING OBJECTIVE Calculate the cost of using credit and borrowing money. COST OF CREDIT COMPARISON When you borrow money, the lender charges a rate of interest for the length of time the money is borrotved. Refer to Job 16 to review the formula for calculating interest, if necessary. Annual Percentage Rate (APR) is the yearly rate that is charged for borrowing money. It is also a way to compare the cost of a loan. Finance 7. With which credit card company would Sam pay the lowest interest? charges are any additional fees that represent the cost of borrowing money. These charges are added to the original amount of a loan. Examples of tinance 8. The balance on Jordon's credit card account is $621. charges are annual fees and late fees. Some credit a. A late fec of $35 was applied. What is the new balance? card companies require an annual fee of $50 of $100 ), b. If the new bilance is now subject to a 29,99%, APR, what is the monthly If a credit card company is not paid on time, you may interest amount? have to pay a late fee, and your APR could be subject c. What is the total amount Jordon owes on his account this month? to an increase. To work Problems 1-7: Sam is comparing the cost of interest for three 9. The balance on Maria's credit card account is $289. credit card companies. He expects his credit card a. She has an annual membership fee of $50. What is the new balance? balance at the end of each month will be about \$450. What will be the annual and monthly interest amounts for each credit card company? 1. Multiply the principal (450) by the Annual Percentage Rate (16.8%) to calculate the Annual Interest (75.60). 2. Multiply the Annual Interest by the number of days in a month (30). 3. Divide by the number of days in a year (360) to calculate the Monthly Interest (6.30). 4. After working Problems 1-6, answer the Problem 7 question. To work Problems 8-9: Using the information given for each problem, calculate the finance charges and account balances. Borrowing Money Answers BORROWING MONEY 10. Mr. Reed needed to buy a new air conditioner for his business. He borrowed $2,500 from the bank with an interest rate of 111/2% a year. Mr. Reed repaid 10a. 2 To purchase an expensive item such as a car or comthe loan in 12 months. b. loan company, or credit union. To make money, the a. What was the amount of interest Mr. Reed paid? lender charges interest on the money you borrow. b. What was the total amount Mr. Reed paid the bank? To work Problems 10-14: 11. Julie Hammond wanted to take a summer trip to Europe but found she needed $1,800 more than she had. Her bank loaned her the money at 16% 1a. 2 b. 182,99 2a. 2,6 interest. Julie repaid the money in 12 months. b. 7307 2. Multiply the yearly interest by the time (use a. How much interest did she pay? b. What was the total amount Julie paid the bank? 13a. 56 1 month =30 days) 3. Divide by the number of days in the year (360) to 12. Dave, a classical guitarist, wanted to buy a 1977 Ramirez guitar for $2,300. calculate the interest paid. His bank loaned him the $2,300 at the rate of 15.4% for a year. Dave repaid 4. Add the interest paid to the principal to calculate the money in 9 months. a. What was the amount of interest Dave paid? 4a. 2.1790,2039 4. Add the interest paid to the total amount paid to the bank. b. What was the total amount he paid the bank? 15. 1 INSTALLMENT BUYING 13. Emma Holden wanted to start her own business. In addition to her savings, 16. LO4,5 INSTALLMENT BUYING she needed $4,000. Her credit union loaned her the money at 12.30 a year. 17. Q2s+a expensive for us to pay the entire price at the time it Emma repaid the loan in 16 months. 18. is purchased. Most merchants realize this and arrange a. How much interest did she pay? 19. a plan of purchasing called installment buying. The b. What was the total amount Emma paid to the bank? customer makes a down payment on the item and is 14. Daniel needed a home repair loan to replace his roof and make other repairs. allowed to take it home. The customer agrees to pay His bank loaned him $17,060 at 14\%. Daniel repaid the money in 1 year. a finance charge. This charge pays for the extra time a. What was the amount of interest Daniel paid? and money it costs the merchant to do business on b. What was the total amount he paid the bank? the installment plan. To work Problems 15-19: Installment Buying 1. Multiply the amount paid each month by the 15. Jason purchased a car for $3,500 down and $425 a month on an installment plan for 12 months. What number of monthly payments. was the installment price Jason paid for the car? 2. Add the total from Step 1 to the down payment 16. Tiffany Bowde's parents agreed to pay the $225 down payment on the stereo system Tiffany wanted. Tiffany had to pay the $46.95 monthly payments. If she made the payments for 10 months, what was the installment price for the stereo system? 17. Mike Porter wanted to purchase a sofa for his new apartment. The sofa was on sale for $726.00. Mike decided to pay $150 down and $56.25 for 12 months. How much did Mike pay for the $726.00 sofa
