PREC 11

Debt and Loans Worksheet

Name: _______________

How Do You Write a Song That Will Knock Over a Cow? Solve each problem below. Cross out the box that contains your answer. When you finish, print the letters from the remaining boxes in the spaces at the bottom of the page. 1.

You borrow $25 000.00 for a car with a 7% interest rate, compounded annually. How much will you pay monthly if you want it to be paid off in 6 years?

2.

You borrow $2 973.82 from the bank to buy a guitar. The bank’s terms are an annual interest rate of 4% compounded monthly, with payments made each month over a 2-year period. What is the total cost?

3.

Betty takes out a $2500.00 loan for a car that she recently purchased. The loan is compounded monthly, with an interest rate of 7.75%. She wants to pay off the loan in 2 years. How much must she pay per month?

4.

You want to buy a car for $15 000.00 and have a down payment of $5500.00. You take out a 5-year loan at an interest rate of 7%, compounded monthly. What will your monthly payments be?

5.

You borrow $15 500.00 at 11.5%, compounded monthly. You want to have the loan paid off in 3 years (making monthly payments). If this happens, what is total amount of interest you end up paying?

6.

Dylan, a hair stylist, has decided to open a home business but needs a loan to renovate. The cost of renovations will include materials, labour, and equipment. He wants to pay off the loan in 5 years by paying no more than $80 at the end of every week. If the bank offers him an interest rate of 9.5%, compounded weekly, how much can Dylan borrow?

7.

Jody must now pay $30 000 to pay off her bank loan, which she borrowed 8 years ago. The loan was compounded quarterly at an interest rate of 6.1%. How much interest must Jody pay?

8.

Sarah wants to borrow a loan at 9.6%, compounded quarterly. She wants to pay off this loan by making quarterly payments of $480. If she wants to pay off the loan in 4 years, how much can Sarah borrow?

9.

Amelia purchased a refrigerator at a special sale for $1780. The special sale was that no interest would have to be paid for 16 months as long as the balance was paid in that time. Otherwise, a penalty equal to an interest rate of 17.9%, compounded monthly, on the full balance would be charged, starting from the date of the purchase. How much more would she have to pay if Amelia missed the deadline by 1 day?

BY

IN

SO

TH

BE

AT

ER

$2900.68

$15 365.21

$423.65

$188.11

$6290.13

$16 545.65

$475.83

EF

OR

NG

FL

IT

BE

AT

$115.87

$112.78

$6315.44

$12 765.21

$11 516.45

$3099.36

$3021.46