Question

1.Calculate the amount of interest that will be paid on a motorcycle loan of $9,000 with a simple interest rate of 7% over the course of 5 years.

2.Calculate the amount of interest that will be paid on a house that costs $110,000 with a simple interest rate of 4% over 30 years. How much total will eventually be

paid for the house?

3.A pontoon boat is being sold for $65,000. With an offer of 6% APR (simple interest)for 10 years, how much will be paid in interest? How much total will be paid for the

boat? How much will the monthly payments be?

4.Jose wants to buy a Ford Focus for $23,000. He plans to put $5,000 down and is offered a payment plan of $347 per month for 5 years. How much is the amount financed, the total installment price, and the finance charge?

5.Mary decides to buy an entertainment system for $3,200. She puts $200 down and is offered a payment plan of $132.96 per month for 2 years. How much is the amount financed, the total installment price, and the finance charge?

6. Sally finances a large furniture purchase of $10,500. She puts $1000 down and finances the rest for 3 years at 6% simple interest. What is the amount financed, the finance charge, the total installment price, and the monthly payments?

7.Jamie finances a used car purchase of $7400. He puts $1500 down and finances the rest for 4 years at 4.1% simple interest. What is the amount financed, the finance charge, the total installment price, and the monthly payments?

8.Maryam and Ali finance a couple of matching laptops for $2150. They put $300 down and finance the rest for 2 years at 5% simple interest. What is the amount financed, the finance charge, the total installment price, and the monthly payments?

Answer 1

1. Simple interest (I) = prt

where,

p = principal amount

r = rate of interest

t = time period

Simple Interest (I) = $9000 * 0.07 * 5

= $ 3150

2. Simple interest (I) = prt

where,

p = principal amount

r = rate of interest

t = time period

Simple Interest (I) = $1,10,000 * 0.04 * 30

= $ 1,32,000

Total = Principal + Interest = $1,10,000 + $1,32,000 = $ 2,42,000

3. Simple interest (I) = prt

where,

p = principal amount

r = rate of interest

t = time period

Simple Interest (I) = $65,000 * 0.06 * 10

= $ 39000

Total = Principal + Interest = $65,000 + $ 39,000

Monthly Instalment (EMI) =

Where,

P = principal

R = rate of interest

n = tenure of payment

Monthly Instalment (EMI)= = = $8243