Find i the rate per period and n the number of periods for t

Find i (the rate per period) and n (the number of periods) for the loan at the given annual rate.

10) Annual payments of $378.80 are made for 8 years to repay a loan at 6.4% compounded annually.

A) i = 0.008; n = 8 B) i = 0.064; n = 16 C) i = 0.00533; n = 12 D) i = 0.064; n = 8

11) Quarterly Payments of $3000 are made for 4 years to repay a loan at 10.2% compounded quarterly. A) i = 0.0255; n = 4 B) i = 0.006375; n = 4
C) i = 0.102; n = 16 D) i = 0.0255; n = 16

Solve the problem.

12) Sammy borrowed $10,000 to purchase a new car at an annual interest rate of 11%. She is to pay it back in equal monthly payments over a 5-year period. How much total interest will be paid over

the period of the loan? Round to the nearest dollar.
A) $3045 B) $1435 C) $92 D) $3630

Find the payment necessary to amortize the loan.

13) $12,700; 12% compounded monthly; 48 monthly payments
A) $329.12 B) $334.44 C) $334.68

14) $2200; 12% compounded quarterly; 8 quarterly payments
A) $442.87 B) $282.23 C) $313.40 13) 14) D) $313.64

Find the monthly house payment necessary to amortize the following loan.

15) In order to purchase a home, a family borrows $70,000 at 12% for 15 years. What is the monthly 15) payment?

A) $902.99 B) $700.00 C) $840.12 D) $46.67

Solve the problem. Round to the nearest cent as needed.

16) The monthly payments on a $73,000 loan at 13% annual interest are $807.38. How much of the first monthly payment will go toward the principal?

A) $790.83 B) $702.42 C) $104.96 D) $16.55

17) The monthly payments on a $79,000 loan at 14% annual interest are $982.76. How much of the first monthly payment will go toward interest?

A) $921.67 B) $137.59 C) $1106.00 D) $845.17

Solution

10.

D) i = 0.064; n = 8

rate of interest = i = 6.4% = 6.4/100 = 0.064

number of years = n x k= 8 x 1 = 8 yrs (since compounded annually, so k = 1)