math 144 review exam 2
exam complete with verified
solutions
A certain loan program offers an interest rate of
4%, compounded continuously. Assuming no
payments are made, how much would be owed
after six years on a loan of $2700?
Do not round any intermediate computations, and
round your answer to the nearest cent.
If necessary, refer to the list of financial formulas. -
answer $
Kala wants to buy a new car but needs money for
the down payment. Her parents agree to lend her
money at an annual rate of 2%, charged as simple
interest. They lend her $5000 for 6 years. She
makes no payments except the one at the end of
that time.
Answer the following questions. If necessary, refer
to the list of financial formulas.
(a) How much total interest will Kala have to pay?
(b) What will
the total repayment amount be (including
interest)? - answer a.)
b.)
, To pay for a $23,400 fishing boat, Leila made a
down payment of $3200 and took out a loan for the
rest. On the loan, she paid monthly payments of
$447.12 for 4 years.
What was the total amount Leila ended up paying
for the fishing boat (including the down payment
and monthly payments)?
(a)
How much interest did Leila pay on the loan?
(b) - answer Finding the total amount paid for the
fishing boat (including the down payment and
monthly payments)
Leila made a down payment of $3200. She also
paid $447.12 per month for 4 years (48 months) to
pay off the loan.
Total amount paid = 3200 + (48 × 447.12) =
$24,661.76
The total amount paid was *$24,661.76.*
Finding the interest paid
To calculate the interest (finance charge), we find
the difference between the total amount Leila paid
and the original price of the fishing boat.
exam complete with verified
solutions
A certain loan program offers an interest rate of
4%, compounded continuously. Assuming no
payments are made, how much would be owed
after six years on a loan of $2700?
Do not round any intermediate computations, and
round your answer to the nearest cent.
If necessary, refer to the list of financial formulas. -
answer $
Kala wants to buy a new car but needs money for
the down payment. Her parents agree to lend her
money at an annual rate of 2%, charged as simple
interest. They lend her $5000 for 6 years. She
makes no payments except the one at the end of
that time.
Answer the following questions. If necessary, refer
to the list of financial formulas.
(a) How much total interest will Kala have to pay?
(b) What will
the total repayment amount be (including
interest)? - answer a.)
b.)
, To pay for a $23,400 fishing boat, Leila made a
down payment of $3200 and took out a loan for the
rest. On the loan, she paid monthly payments of
$447.12 for 4 years.
What was the total amount Leila ended up paying
for the fishing boat (including the down payment
and monthly payments)?
(a)
How much interest did Leila pay on the loan?
(b) - answer Finding the total amount paid for the
fishing boat (including the down payment and
monthly payments)
Leila made a down payment of $3200. She also
paid $447.12 per month for 4 years (48 months) to
pay off the loan.
Total amount paid = 3200 + (48 × 447.12) =
$24,661.76
The total amount paid was *$24,661.76.*
Finding the interest paid
To calculate the interest (finance charge), we find
the difference between the total amount Leila paid
and the original price of the fishing boat.
