060237RR Business And Finance Basics, Part 2

1. What does an amortization schedule show? A. The balance of interest outstanding B. The increase to principal ---C. The portion of payment broken down to interest and principal D. The increase in loan outstanding

2. With a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges? ---A. $50,236.80 B. $545.76 C. $5,023.68 D. $54,576

3. Darlene Ramirez bought a home for $140,000. She put 20% down with a mortgage rate of 7.5% for 25 years. Her yearly payments are A. $1,776. ---B. $9,932.16. C. $9,329.61. D. $12,415.20.

4. Justin Chan bought a Scion car for $8,200, putting down $800 and financing the remainder with 60 monthly payments of $179.99. Using the tables found in your textbook, the APR by table lookup is A. Close to 15 percent B. Close to 13½ percent ----C. Between 16.00 and 16.25 percent D. Close to 14 percent

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