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    01 Business Math Loans Worksheet 1

    Uploaded by

    Don McArthney Tugaoen
    This document provides a series of word problems related to calculating costs associated with store credit, loans, and installment purchases. It asks the reader to calculate extra costs compared to cash prices, monthly loan payments, total costs repaid over the life of various loans, and total costs of purchasing a car and home using loans and down payments. The problems cover topics like determining monthly payments, total interest paid, number of payments, and calculating total costs when given loan details like principal, interest rate, term, and monthly or quarterly payment amounts.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    01 Business Math Loans Worksheet 1

    Uploaded by

    Don McArthney Tugaoen
    188 views3 pages
    This document provides a series of word problems related to calculating costs associated with store credit, loans, and installment purchases. It asks the reader to calculate extra costs compared to cash prices, monthly loan payments, total costs repaid over the life of various loans, and total costs of purchasing a car and home using loans and down payments. The problems cover topics like determining monthly payments, total interest paid, number of payments, and calculating total costs when given loan details like principal, interest rate, term, and monthly or quarterly payment amounts.

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    business loans computations

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    This document provides a series of word problems related to calculating costs associated with store credit, loans, and installment purchases. It asks the reader to calculate extra costs compared to cash prices, monthly loan payments, total costs repaid over the life of various loans, and total costs of purchasing a car and home using loans and down payments. The problems cover topics like determining monthly payments, total interest paid, number of payments, and calculating total costs when given loan details like principal, interest rate, term, and monthly or quarterly payment amounts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    188 views3 pages

    01 Business Math Loans Worksheet 1

    Uploaded by

    Don McArthney Tugaoen
    This document provides a series of word problems related to calculating costs associated with store credit, loans, and installment purchases. It asks the reader to calculate extra costs compared to cash prices, monthly loan payments, total costs repaid over the life of various loans, and total costs of purchasing a car and home using loans and down payments. The problems cover topics like determining monthly payments, total interest paid, number of payments, and calculating total costs when given loan details like principal, interest rate, term, and monthly or quarterly payment amounts.

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    © All Rights Reserved
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    Business Math – Loans (Worksheet #1) “Store Credit and Loan Basics” 

    1.)  How much extra does it cost to buy an automobile mechanic’s tool set by using store credit (details 
    below) versus paying cash? 

    Cash Price = $1350.00 
    Store Credit Offer = Pay $250 down, then pay $53.17/month for 24 months. 

      Answer:  It costs $__________ extra to buy the tools using store credit. 

    2.)  How much extra does it cost to buy a laptop computer by using Buy.com’s store credit offer versus 
    paying cash? 

    Cash Price = $475.00 
    Store Credit Offer = Pay $50.00 down, then pay $48.92/month for 12 months. 

      Answer:  It costs $__________ extra to buy the laptop computer using Buy.com’s credit offer. 

    3.)  Compare the costs of these two installment purchase options for a basic office copier machine 
    versus the cash price. 

    Cash Price = $745.00 
    Store Credit Option A = $150.00 down payment, then pay $54.54/month for 12 months. 
    Store Credit Option B = $200 down payment, then pay $28.16/month for 24 months. 

      Answers:  By using Store Credit Option A, it costs $__________ extra compared to the cash price 
      to buy the copier. 
       
      By using Store Credit Option B, it costs $__________ extra compared to the cash price to buy 
      the copier. 

    4.)  You have an old computer that your relative would like to buy from you.  Your offer to sell it $280 
    cash is rejected because he doesn’t have that much money now.  Your relative counters with this offer, 
    “I’ll give you $25 now as a down payment. Then I’ll kick‐in $40 interest if I can pay the interest and the 
    balance owed monthly for the next 8 months.” 

    Based on this offer, what will be the monthly payment amount?   

    Answer:  $_________ per month for the next 8 months. 

     
    For each problem 5.) through 8.) below, answer the following series of questions. 

    5.)  Amount Borrowed = $18,000 
      Interest Rate = 4% 
      Term = 3 years 
      Monthly Payment = $531.43 

      Answers:   Principle = $___________ 
          Total number of payments = ________ 
          Total Amount Repaid = $__________ 
          Interest (cost) = $__________ 

     
    6.)  Amount Borrowed = $138,000 
      Interest Rate = 5% 
      Term = 25years 
      Monthly Payment = $806.73 

      Answers:   Principle = $___________ 
          Total number of payments = ________ 
          Total Amount Repaid = $__________ 
          Interest (cost) = $__________ 

     
    7.)  Amount Borrowed = $75,000 
      Interest Rate = 4.5% 
      Term = 6 years 
      Quarterly Payment = $3,583.28 

      Answers:   Principle = $___________ 
          Total number of payments = ________ 
          Total Amount Repaid = $__________ 
          Interest (cost) = $__________ 

     
    8.)  Amount Borrowed = $100,000 
      Interest Rate = 4.1% 
      Term = 4 years 
      Semiannual Payment = $13,680.41 

      Answers:   Principle = $___________ 
          Total number of payments = ________ 
          Total Amount Repaid = $__________ 
          Interest (cost) = $__________ 
    9.)  Determine the total cost to purchase the car shown below: 

    Selling Price of Car:  $24,200 
    Down Payment:  $2,500 
     
    The loan is for 5 years at 3.5% interest, which yields a monthly payment of $394.72 

      Total Cost to Purchase Car = $__________ 

    10.)  Determine the total cost to purchase the home shown below: 

    Selling Price of Home:  $150,000 
    Down Payment:  $20,000   
    The loan is for 30 years at 4.5% interest, which yields a monthly payment of $659.10 

      Total Cost to Purchase Home = $__________ 

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