Question 1

Mel Blanc bought a new dining room set for $6,600. Mel put down $1,000 and financed the balance at 12% for 36 months. What will his monthly payment be?

Accepted Answer

The answer of Mel Blanc bought a new dining room...

Question 2

Able Long buys a new desk for $2,400. Able will pay back $250 per month. Monthly interest is 3% on the unpaid balance. Calculate the balance outstanding after the second payment. (Use the U.S. Rule.)

Accepted Answer

$2,038.66
$2,400 * ....

Question 3

Given the following: The average daily balance is:

Accepted Answer

A)   $910.34
B)   $755.17
C)   $810.43
D)   $755.71
E)   None of these

Question 4

Open credit in a revolving charge plan results in:

Accepted Answer

A)   One purchase per month
B)   The U.S. Rule being applied to each purchase
C)   As many cash purchases till credit limit is reached
D)   As many charged purchases till credit limit is reached
E)   None of these

Question 5

Finance charge equals total of all monthly payments minus amount financed.

Accepted Answer

A) True 
 B)False

Question 6

Pete Frank bought a computer for $4,000. Pete put down $500 and financed the balance at 10 1/2% for 36 months. What is his monthly payment?

Accepted Answer

The answer of Pete Frank bought a computer for $4,000....

Question 7

The Truth in Lending Act regulates interest charges.

Accepted Answer

A) True 
 B)False

Question 8

The cost of credit reports would be included in the amount financed.

Accepted Answer

A) True 
 B)False

Question 9

Calculate (A) finance charge, (B) rebate, and (C) payoff.

Accepted Answer

A. $2,760;...

Question 10

The APR represents the:

Accepted Answer

A)   Stated rate of interest
B)   True effective quarterly interest rate charged by seller
C)   True effective annual rate of interest charged by buyer
D)   True effective annual rate of interest charged by seller
E)   None of these

Question 11

The APR represents the stated interest rate.

Accepted Answer

A) True 
 B)False

Question 12

The finance charge is equal to the total of all monthly payments:

Accepted Answer

A)   Plus amount financed
B)   Minus amount financed
C)   Divided by amount financed
D)   Multiplied by amount financed
E)   None of these

Question 13

Pete Sole bought a used car for $8,000. Pete put down $2,000 and financed the balance at 10 1/2% for 60 months. What is his monthly payment?

Accepted Answer

The answer of Pete Sole bought a used car for...

Question 14

Calculate the monthly payment:

Accepted Answer

The answer of Calculate the monthly payment:
 ...

Question 15

Calculate APR (to nearest hundredth percent):

Accepted Answer

The answer of Calculate APR (to nearest hundredth percent):
 ...

Question 16

Bill Moore bought a stereo selling for $5,800, putting down $1,200. The payment schedule was for 48 monthly payments of $117.50. What is the APR?

Accepted Answer

The answer of Bill Moore bought a stereo selling for...

Question 17

Calculate the finance charge:

Accepted Answer

$800
12 * $175 = $2,...

Question 18

Amount financed is equal to:

Accepted Answer

A)   Cash price times down payment
B)   Cash price plus down payment
C)   Cash price minus down payment
D)   Cash price divided by down payment
E)   None of these

Question 19

Pete Size read the following partial advertisement: Price $20,999; down payment $1,000; cash or trade; $390.85 per month for 60 months. Calculate (A) the total finance charge and (B) the APR.

Accepted Answer

The answer of Pete Size read the following partial advertisement:...

Question 20

The daily balance is the previous balance plus cash advances plus purchases minus any payments.

Accepted Answer

A) True 
 B)False

Exam 10: Installment Buying and Revolving Charge Credit Cards

The daily balance is the previous balance plus cash advances plus purchases minus any payments.

Correct AnswerverifiedShow Answer

Bill Moore bought a stereo selling for $5,800, putting down $1,200. The payment schedule was for 48 monthly payments of $117.50. What is the APR?

Correct AnswerverifiedShow Answer

Calculate APR (to nearest hundredth percent):

Correct AnswerverifiedShow Answer

The cost of credit reports would be included in the amount financed.

Correct AnswerverifiedShow Answer

Given the following: The average daily balance is:

Correct AnswerverifiedShow Answer

Pete Sole bought a used car for $8,000. Pete put down $2,000 and financed the balance at 10 1/2% for 60 months. What is his monthly payment?

Correct AnswerverifiedShow Answer

Calculate (A) finance charge, (B) rebate, and (C) payoff.

Correct AnswerverifiedA. $2,760;...View AnswerShow Answer

Calculate the monthly payment:

Correct AnswerverifiedShow Answer

Mel Blanc bought a new dining room set for $6,600. Mel put down $1,000 and financed the balance at 12% for 36 months. What will his monthly payment be?

Correct AnswerverifiedShow Answer

The APR represents the stated interest rate.

Correct AnswerverifiedShow Answer

Able Long buys a new desk for $2,400. Able will pay back $250 per month. Monthly interest is 3% on the unpaid balance. Calculate the balance outstanding after the second payment. (Use the U.S. Rule.)

Correct Answerverified$2,038.66$2,400 * ....View AnswerShow Answer

Pete Frank bought a computer for $4,000. Pete put down $500 and financed the balance at 10 1/2% for 36 months. What is his monthly payment?

Correct AnswerverifiedShow Answer

The Truth in Lending Act regulates interest charges.

Correct AnswerverifiedShow Answer

Amount financed is equal to:

Correct AnswerverifiedShow Answer

Open credit in a revolving charge plan results in:

Correct AnswerverifiedShow Answer

Calculate the finance charge:

Correct Answerverified$80012 * $175 = $2,...View AnswerShow Answer

Pete Size read the following partial advertisement: Price $20,999; down payment $1,000; cash or trade; $390.85 per month for 60 months. Calculate (A) the total finance charge and (B) the APR.

Correct AnswerverifiedShow Answer

The finance charge is equal to the total of all monthly payments:

Correct AnswerverifiedShow Answer

Finance charge equals total of all monthly payments minus amount financed.

Correct AnswerverifiedShow Answer

The APR represents the:

Correct AnswerverifiedShow Answer

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A. $2,760;...
View Answer

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$2,038.66
$2,400 * ....
View Answer

Correct Answer
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$800
12 * $175 = $2,...
View Answer

Correct Answer
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Correct Answer
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