Mathematics with Business Applications

Chapter 8:

Practice Test

1.
Carrie Houghtaling's bank granted her a single-payment loan of $3,000 for 60 days at 11 percent ordinary interest. What is the maturity value of the loan?
A)$3,055
B)$3,330
C)$3,550
D)$19,800
2.
The Browns are buying a living room set for $1,875. They made a down payment of $250 and financed the remainder. How much did the Browns finance?
A)$250
B)$1,625
C)$1,875
D)$2,125
3.
Mercy Banyo obtained an installment loan of $1,400 to repave her driveway. The annual percentage rate is 12 percent. She must repay the loan in 12 months. According to the the table below, what is the finance charge?
<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/0078692512/347312/Chapter_8_Loans_3.gif','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (1.0K)</a>
A)$168.00
B)$124.32
C)$106.56
D)$91.84
4.
Kathleen O'Rourke obtained a home improvement loan of $2,000 at 10 percent for 12 months. The monthly payment is $175.80. What portion of the first payment is toward principal?
A)$8.79
B)$16.67
C)$159.13
D)$167.01
5.
Walter Lane took out a simple interest loan of $3,000.00 at 10 percent interest for 18 months. After four payments the balance is $2,530.20. He pays off the loan when the next payment is due. What is the interest?
A)$14.06
B)$21.09
C)$140.57
D)$253.02
6.
Felicia Garcia obtained an installment loan of $3,000 to buy new appliances. The finance charge is $169.20. She agreed to repay the loan in 12 monthly payments. According to the table below, what is the annual percentage rate?
<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/0078692512/347312/Chapter_8_Loans_6.gif','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (2.0K)</a>
A)10.75%
B)10.50%
C)10.25%
D)10.00%
7.
Isaiah Washington's bank granted him a single-payment loan of $2,500 for 90 days at 10 percent ordinary interest. What is the maturity value of the loan?
A)$62.50
B)$250.00
C)$256.25
D)$2,562.50
8.
The Woods are buying a used car for $5,500. They made a down payment of $500 and financed the remainder. How much did the Browns finance?
A)$500.00
B)$4,500.00
C)$5,000.00
D)$6,000.00
9.
Ana Steiner obtained an installment loan of $2,500 for a new computer. The annual percentage rate is 14 percent. She must repay the loan in 18 months. According to the table below, what is the monthly payment?
<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/0078692512/347312/Chapter_8_Loans_9.gif','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (2.0K)</a>
A)$350.00
B)$154.75
C)$19.44
D)$6.19
10.
Sarah Morgan obtained an installment loan of $4,500. The finance charge is $392.85. She agreed to repay the loan in 18 monthly payments.According to the table below, what is the annual percentage rate?
<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/0078692512/347312/Chapter_8_Loans_10.gif','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (2.0K)</a>
A)10.75%
B)10.50%
C)10.25%
D)10.00%
Glencoe Online Learning CenterBusiness Administration HomeProduct InfoSite MapContact Us

The McGraw-Hill CompaniesGlencoe

Please read our Terms of Use and Privacy Policy before you explore our Web site. To report a technical problem with this Web site, please contact the Web Producer.