1. Chapter 11 Consumer Mathematics Active Learning Lecture Slides
AND
Active Learning Lecture Slides
For use with Classroom Response Systems
Chapter 11
Consumer Mathematics

2. Find the missing quantity by using the simple interest formula. i =
Find the missing quantity by using the simple interest formula. i = ?, p = $5200, r = 6.5% per year, t = 6 months
a. $16.90
b. $169.00
c. $
d. $

3. Find the missing quantity by using the simple interest formula. i =
Find the missing quantity by using the simple interest formula. i = ?, p = $5200, r = 6.5% per year, t = 6 months
a. $16.90
b. $169.00
c. $
d. $

4. Find the missing quantity by using the simple interest formula
Find the missing quantity by using the simple interest formula. i = $720, p = $3000, r = 6% per year, t = ?
a years
b. 0.4 years
c. 4 years
d. 40 years

5. Find the missing quantity by using the simple interest formula
Find the missing quantity by using the simple interest formula. i = $720, p = $3000, r = 6% per year, t = ?
a years
b. 0.4 years
c. 4 years
d. 40 years

6. Ella borrowed $6300 from a bank for 24 months at a rate of 4
Ella borrowed $6300 from a bank for 24 months at a rate of 4.9% simple interest. How much interest did she pay for the use of the money?
a. $617.40
b. $61.74
c. $
d. $

7. Ella borrowed $6300 from a bank for 24 months at a rate of 4
Ella borrowed $6300 from a bank for 24 months at a rate of 4.9% simple interest. How much interest did she pay for the use of the money?
a. $617.40
b. $61.74
c. $
d. $

8. Ella borrowed $6300 from a bank for 24 months at a rate of 4
Ella borrowed $6300 from a bank for 24 months at a rate of 4.9% simple interest. What is the amount she repaid to the bank on the due date of the loan?
a. $
b. $
c. $
d. $

9. Ella borrowed $6300 from a bank for 24 months at a rate of 4
Ella borrowed $6300 from a bank for 24 months at a rate of 4.9% simple interest. What is the amount she repaid to the bank on the due date of the loan?
a. $
b. $
c. $
d. $

10. Kyle received a loan of $2500 with interest at a 4
Kyle received a loan of $2500 with interest at a 4.5% for 90 days on July 1. Kyle made a payment of $900 on August 10. How much did he owe the bank on the date of maturity?
a. $
b. $
c. $
d. $

11. Kyle received a loan of $2500 with interest at a 4
Kyle received a loan of $2500 with interest at a 4.5% for 90 days on July 1. Kyle made a payment of $900 on August 10. How much did he owe the bank on the date of maturity?
a. $
b. $
c. $
d. $

12. Kyle received a loan of $2500 with interest at a 4
Kyle received a loan of $2500 with interest at a 4.5% for 90 days on July 1. Kyle made a payment of $900 on August 10. What total amount of interest did he pay on the loan?
a. $
b. $112.50
c. $22.58
d. $2.26

13. Kyle received a loan of $2500 with interest at a 4
Kyle received a loan of $2500 with interest at a 4.5% for 90 days on July 1. Kyle made a payment of $900 on August 10. What total amount of interest did he pay on the loan?
a. $
b. $112.50
c. $22.58
d. $2.26

14. Compute the total amount: Principal: $7500, Time: 5 years, Rate: 2
Compute the total amount: Principal: $7500, Time: 5 years, Rate: 2.8%, Compounded: Quarterly
a. $
b. $
c. $
d. $13,029.37

15. Compute the total amount: Principal: $7500, Time: 5 years, Rate: 2
Compute the total amount: Principal: $7500, Time: 5 years, Rate: 2.8%, Compounded: Quarterly
a. $
b. $
c. $
d. $13,029.37

16. Compute the total amount: Principal: $5000, Time: 2 years, Rate: 8%, Compounded: Monthly
b. $12,590.85
c. $
d. $

17. Compute the total amount: Principal: $5000, Time: 2 years, Rate: 8%, Compounded: Monthly
b. $12,590.85
c. $
d. $

18. A new stove sells for $3250. To finance it through a bank, the bank will require a down payment of 20% and monthly payments of $150 for 18 months. How much money will the purchaser have to borrow from the bank?
a. $2700
b. $2600
c. $2500
d. $650

19. A new stove sells for $3250. To finance it through a bank, the bank will require a down payment of 20% and monthly payments of $150 for 18 months. How much money will the purchaser have to borrow from the bank?
a. $2700
b. $2600
c. $2500
d. $650

20. A new stove sells for $3250. To finance it through a bank, the bank will require a down payment of 20% and monthly payments of $150 for 18 months. What finance charge will the purchaser have to pay the bank?
a. $100
b. $200
c. $300
d. $550

21. A new stove sells for $3250. To finance it through a bank, the bank will require a down payment of 20% and monthly payments of $150 for 18 months. What finance charge will the purchaser have to pay the bank?
a. $100
b. $200
c. $300
d. $550

22. A new stove sells for $3250. To finance it through a bank, the bank will require a down payment of 20% and monthly payments of $150 for 18 months. What is the APR?
a. 4.0%
b. 4.5%
c. 5.0%
d. 5.5%

23. A new stove sells for $3250. To finance it through a bank, the bank will require a down payment of 20% and monthly payments of $150 for 18 months. What is the APR?
a. 4.0%
b. 4.5%
c. 5.0%
d. 5.5%

24. Brian borrowed $3000. To repay the loan, he was scheduled to make 24 monthly installment payments of $ Instead of making his 12th payment, Brian decides to pay off the loan. Determine the APR of the installment loan.
a. 6.0%
b. 6.5%
c. 7.0%
d. 7.5%

25. Brian borrowed $3000. To repay the loan, he was scheduled to make 24 monthly installment payments of $ Instead of making his 12th payment, Brian decides to pay off the loan. Determine the APR of the installment loan.
a. 6.0%
b. 6.5%
c. 7.0%
d. 7.5%

26. Brian borrowed $3000. To repay the loan, he was scheduled to make 24 monthly installment payments of $ Instead of making his 12th payment, Brian decides to pay off the loan. How much interest will Brain save (actuarial method)?
a. $34.87
b. $59.76
c. $63.95
d. $68.13

27. Brian borrowed $3000. To repay the loan, he was scheduled to make 24 monthly installment payments of $ Instead of making his 12th payment, Brian decides to pay off the loan. How much interest will Brain save (actuarial method)?
a. $34.87
b. $59.76
c. $63.95
d. $68.13

28. Brian borrowed $3000. To repay the loan, he was scheduled to make 24 monthly installment payments of $ Instead of making his 12th payment, Brian decides to pay off the loan. What is the total amount due to pay off the loan?
a. $
b. $
c. $
d. $

29. Brian borrowed $3000. To repay the loan, he was scheduled to make 24 monthly installment payments of $ Instead of making his 12th payment, Brian decides to pay off the loan. What is the total amount due to pay off the loan?
a. $
b. $
c. $
d. $

30. Cailin’s credit card statement shows a balance due of $840
Cailin’s credit card statement shows a balance due of $ on November 22, the billing date. For the period ending on December 22, she had the following transactions. Nov 29 Charge: Groceries $ Dec 1 Charge: Gas $ Dec 2 Payment $ Dec 15 Charge: Gifts $ Determine the finance charge on November 22 by using the unpaid balance method. Assume that the interest rate is 1.5% per month.
a. $ b. $9.32
c. $ d. $1.26

31. Cailin’s credit card statement shows a balance due of $840
Cailin’s credit card statement shows a balance due of $ on November 22, the billing date. For the period ending on December 22, she had the following transactions. Nov 29 Charge: Groceries $ Dec 1 Charge: Gas $ Dec 2 Payment $ Dec 15 Charge: Gifts $ Determine the finance charge on November 22 by using the unpaid balance method. Assume that the interest rate is 1.5% per month.
a. $ b. $9.32
c. $ d. $1.26

32. Cailin’s credit card statement shows a balance due of $840
Cailin’s credit card statement shows a balance due of $ on November 22, the billing date. For the period ending on December 22, she had the following transactions. Nov 29 Charge: Groceries $ Dec 1 Charge: Gas $ Dec 2 Payment $ Dec 15 Charge: Gifts $ Determine the new account balance on December 22 using the finance charge found in part in the previous problem.
a. $ b. $564.59
c. $ d. $452.63

33. Cailin’s credit card statement shows a balance due of $840
Cailin’s credit card statement shows a balance due of $ on November 22, the billing date. For the period ending on December 22, she had the following transactions. Nov 29 Charge: Groceries $ Dec 1 Charge: Gas $ Dec 2 Payment $ Dec 15 Charge: Gifts $ Determine the new account balance on December 22 using the finance charge found in part in the previous problem.
a. $ b. $564.59
c. $ d. $452.63

34. Cailin’s credit card statement shows a balance due of $840
Cailin’s credit card statement shows a balance due of $ on November 22, the billing date. For the period ending on December 22, she had the following transactions. Nov 29 Charge: Groceries $ Dec 1 Charge: Gas $ Dec 2 Payment $ Dec 15 Charge: Gifts $ Determine the average daily balance for the period.
a. $ b. $564.59
c. $ d. $452.63

35. Cailin’s credit card statement shows a balance due of $840
Cailin’s credit card statement shows a balance due of $ on November 22, the billing date. For the period ending on December 22, she had the following transactions. Nov 29 Charge: Groceries $ Dec 1 Charge: Gas $ Dec 2 Payment $ Dec 15 Charge: Gifts $ Determine the average daily balance for the period.
a. $ b. $564.59
c. $ d. $452.63

36. Ella is buying a new condominium. She has found one that costs $240,000. The taxes on the condominium would be $3500 per year, and the homeowners’ insurance would cost $400 per year. She has applied for a conventional loan from the bank. The bank is requiring a 20% down payment, and the interest rate is 8.5% with 2 points. Ella’s annual income is $87,000. She has more than 10 monthly payments remaining on each of the following: $200 for a car and $250 on a college education loan. The bank will approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners’ insurance that is less than or equal to 28% of their adjusted monthly income.

37. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments $200 and $250 The bank will approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners’ insurance that is less than or equal to 28% of their adjusted monthly income.

38. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments $200 and $250 What is the required down payment?
a. $48,000 b. $52,000
c. $56,000 d. $60,000

39. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments $200 and $250 What is the required down payment?
a. $48,000 b. $52,000
c. $56,000 d. $60,000

40. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments $200 and $250 Determine the amount paid for points.
a. $ b. $4200
c. $ d. $3500

41. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments $200 and $250 Determine the amount paid for points.
a. $ b. $4200
c. $ d. $3500

42. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments - $200 and $250 Determine 28% of her adjusted monthly income.
a. $ b. $2175
c. $ d. $1904

43. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments - $200 and $250 Determine 28% of her adjusted monthly income.
a. $ b. $2175
c. $ d. $1904

44. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments - $200 and $250 Determine the monthly payments of principal and interest for a 25-year loan.
a. $ b. $
c. $ d. $

45. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments - $200 and $250 Determine the monthly payments of principal and interest for a 25-year loan.
a. $ b. $
c. $ d. $

46. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments - $200 and $250 Determine their total monthly payments, including homeowners’ insurance and taxes.
a. $ b. $
c. $ d. $

47. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments - $200 and $250 Determine their total monthly payments, including homeowners’ insurance and taxes.
a. $ b. $
c. $ d. $

48. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments - $200 and $250 Does Ella meet the requirements for the mortgage?
a. Yes b. No
c. Can’t determine d. Maybe

49. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments - $200 and $250 Does Ella meet the requirements for the mortgage?
a. Yes b. No
c. Can’t determine d. Maybe

50. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments - $200 and $250 Determine the total cost of the house (excluding homeowners’ insurance & taxes) after 25 years.
a. $511,716 b. $515,520
c. $463,680 d. $467,520

51. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments - $200 and $250 Determine the total cost of the house (excluding homeowners’ insurance & taxes) after 25 years.
a. $511,716 b. $515,520
c. $463,680 d. $467,520

52. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments - $200 and $250 How much of the total cost is interest, including points?
a. $323,520 b. $271,680
c. $271,716 d. $275,520

53. Condominium costs - $240,000 Taxes - $3500 Homeowners’ insurance cost - $400 per year Bank is requiring a 20% down payment Interest rate is 8.5% with 2 points Ella’s annual income is $87,000 Monthly payments - $200 and $250 How much of the total cost is interest, including points?
a. $323,520 b. $271,680
c. $271,716 d. $275,520

54. To save money for retirement, David invests $550 monthly in an ordinary annuity with 6.5% interest compounded monthly. Determine the accumulated amount in David’s annuity after 25 years.
a. $119,740.77
b. $179,110.36
c. $411,860.09
d. $513,398.55

55. To save money for retirement, David invests $550 monthly in an ordinary annuity with 6.5% interest compounded monthly. Determine the accumulated amount in David’s annuity after 25 years.
a. $119,740.77
b. $179,110.36
c. $411,860.09
d. $513,398.55

56. Kate would like to save $50,000 in ten years
Kate would like to save $50,000 in ten years. How much should she invest in a sinking fund with 5% interest compounded monthly to accumulate this amount?
a. $321.99
b. $521.99
c. $863.93
d. $

57. Kate would like to save $50,000 in ten years
Kate would like to save $50,000 in ten years. How much should she invest in a sinking fund with 5% interest compounded monthly to accumulate this amount?
a. $321.99
b. $521.99
c. $863.93
d. $