HACE 3200 1nd Edition Lecture 15 Outline of Last Lecture I Consumer loans II Acceleration Clause III Equity Outline of Current Lecture II Practice Problems Current Lecture Friday 2 21 1 Principal of 137 000 Rate of 12 7 for a time of 18 months Using simple interest method calculate your interest P 137 000 R 127 T 1 5 Answer 26 098 50 2 Principal of 123 000 Rate of 14 2 for a time of 30 months Using simple interest method calculate your interest P 123 000 R 142 T 2 5 Answer 43 665 3 Principal of 152 000 Rate of 19 7 for a time of 3 years Using simple interest method calculate your interest P 152 000 R 197 T 3 Answer 89 832 4 Principal of 135 000 Rate of 12 6 for a time of 18 months Using the discount method calculate your finance charge interest This method is the same I P R T as the simple interest however in real life you must pay the finance charge up front before receiving the loan P 135 000 R 126 T 1 5 Answer 25 515 5 Using the discount method a calculate the interest finance charge on the following loan and b state what the balance will be on the borrower s check and c the amount that the borrower will repay at the end of the loan Principal 185 000 Rate 17 9 Time 4 years P 185 000 R 179 T 4 A Interest 132 460 B 185 000 132 460 52 540 C 185 000 132 460 317 460 These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute 6 Using the add on method calculate the monthly payment for the following loan Principal of 245 000 Rate of 12 8 for a time of 6 years P 245 000 R 128 T 6 Interest 188 160 188 160 245 000 433 160 72 for monthly payments 6 016 11 per month 7 Calculate my debt limit ratio if my total monthly take home pay and monthly nonmortgage debt payments are as follows Annual take home pay 175 000 calculate monthly 175 000 12 14 583 33 Monthly student loan payment 1850 Monthly car payment 1250 Monthly truck payment 950 Annual personal loan payment 48 000 calculate monthly 48 000 12 4 000 DLR total monthly nonmortgage debt payments is Total monthly take home pay 8 000 14 583 33 5520 convert to percentage 55 2 already encumbered by debt 8 Using the add on method calculate the monthly payment for the following loan Principal of 170 000 Rate of 17 3 for a time of 6 years P 170 000 R 173 T 6 Interest 176 460 176 460 170 000 346 460 72 for monthly 4 811 94 per month 9 Pay Day Loan of 4500 is being borrowed for 3 weeks Only a fee of 500 is charged Calculate your rate of interest P 4500 R T 0577 3 52 500 500 259 65 R R Interest 1 9259 convert to percentage 192 59 These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute
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