Installment Loans Unit 4 – Day 2.

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Presentation transcript:

Installment Loans Unit 4 – Day 2

Loan Payment Formula

Example 1 Blake and Jacqueline are purchasing a $1,399.99 side by-side refrigerator with and installment loan that has an APR of 12%. The store financing requires a 10% down payment and 12 monthly payments. What is her down payment? What is the amount financed? What is their monthly payment? What is their total amount repaid? What is the finance charge?

Example 2 Lisa McCorkle purchases her new $45,000 automobile with a $5,000 down payment and finance the rest with an installment loan for 72 months at an annual percentage rate of 6%. What is her down payment? What is the amount financed? What is their monthly payment? What is their total amount repaid? What is the finance charge?

Example 3 Henry Mills obtained a $4,500 installment loan at and APR of 9%. He must pay a 10% down payment and repay the loan in 24 months. What is her down payment? What is the amount financed? What is their monthly payment? What is their total amount repaid? What is the finance charge?

Example 4 Jason obtains and installment loan to buy $12,000 hot air balloon. His down payment is 25%, and the APR is 9% of 36 months. What is her down payment? What is the amount financed? What is their monthly payment? What is their total amount repaid? What is the finance charge?