# You have a $22,500 line of credit which charges an annual percentage

1. You have a $22,500 line of credit which charges an annual percentage rate of prime rate plus 5%.Your starting balance on April 1 was $6,750. On April 5, you made a payment of $2,500. On April14, you borrowed $5,100, and on April 17, you borrowed $3,800. If the current prime rate is 8%,what is your new balance?A. $15,885.12B. $14,699.54C. $13,150.14D. $13,250.172. Your Office Supply has a $42,500 line of credit that charges an annual percentage rate of primerate plus 3%. Their starting balance on March 1 was $10,600. On March 5, they borrowed$7,500. On March 14, the business made a payment of $3,300, and on March 18, they borrowed$5,300. If the current prime rate is 9%, what is the new balance?A. $27,583.43B. $18,400.29C. $26,100.00D. $20,276.103. Alex wishes to take out an installment loan to finance the purchase of a lawn mower costing5. Her loan requires a 2.75% down payment and equal monthly payments of $125.78 for 9months. What is the amount of the finance charge on this loan?A. $425.47B. $430.64C. $417.02D. $436.684. Boyd purchases a snow blower costing snow blower costing $1,752 by taking out a 13.5% add-on installment loan.The loan requires a 35% down payment and equal monthly payments for 2 years. How much isthe finance charge on this loan?A. $425.15B. $307.48C. $391.04D. $407.255. Mariann purchases a kitchen set costing $3,480 by taking out an 12% add-on installment loan.The loan requires a 25% down payment and equal monthly payments for 3 years. How much areMariann’s monthly payments?A. $98.60B. $105.33C. $126.49D. $92.676. Orestes purchases a patio set costing $2,430 by taking out an 12.5% add-on installment loan.The loan requires a 20% down payment and equal monthly payments for 3 years. How much areOrestes’ monthly payments?A. $74.25B. $96.49C. $125.33D. $82.677. Eddy purchased a club membership costing $2,530. He made a down payment of $530 andfinanced the balance with an installment loan for 48 months. If the payments are $59.27 eachmonth, use Table 13-1 from your text to find the APR. A. 19.75%B. 16.00%C. 17.50%D. 18.50%8. Ted purchased a speedboat costing $15,800 by taking out an installment loan. He made a downpayment of $4,000 and financed the balance for 36 months. If the payments are $383.53 eachmonth, find the APR using Table 13-1.A. 8.50%B. 10.75%C. 10.50%D. 10.00%9. You take out an installment loan to purchase a time-share costing $18,000. You make a downpayment of $2,700 and finance the balance by making monthly payments of $762 for 24months. Use Table 13-1 from your text to find the APR.A. 18.00%B. 18.25%C. 17.75%D. 17.50%10. You wish to finance the purchase of a boat home for $38,600. A finance company offers an APRof 10% on a 24- month installment loan. After using Table 13-1 from your text to find the financecharge, calculate the monthly payment.A. $1,619.08B. $1,769.17C. $1,781.23D. $1,608.3311. A bank offers a 24-month installment loan with an APR of 10.5%. Martha wishes to use the loan tofinance a sofa for $1,000. After using Table 13-1 from your text to find the finance charge, calculate themonthly payment.A. $41.67B. $46.38C. $52.97D. $46.0412. A finance company offers a 24-month installment loan with an APR of 13.5%. Robert wishes to usethe loan to finance a delivery truck for $31,200. After using Table 13-1 from your text to find the financecharge, calculate the monthly payment.A. $1,651.00B. $1,475.50C. $1,490.58D.$612.11 13. May finances a refrigerator for $1,250 by taking out an installment loan for 48 months. The paymentsare $38.54 per month and the total finance charge is $599.92. After 30 months, May decided to pay offthe loan. After calculating the finance charge rebate (using the “Rule-of-78”), find her loan payoff.A. $606.49B. $824.96C. $425.04D. $896.9614. Scott finances a Jet Ski for $4,600 by taking out an installment loan for 48 months. The payments are$153.33 per month and the total finance charge is $2,759.84. After 36 months, Scott decided to pay offthe loan. After calculating the finance charge rebate (using the “Rule-of-78”), find his loan payoff.A. $1,656.91B. $1,562.97C. $276.99D. $1,839.9615. Suppose you take out a 60-month installment loan to finance one year of tuition for $13,100. Thepayments are $327.50 per month and the total finance charge is $6,550. After 24 months, you decide topay off the loan. After calculating the finance charge rebate, find your loan payoff, using the “Rule-of-78.”A. $7,623.77B. $5,476.23C.$11,790.00D. $9,406.23