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Oleg took out a $16 000 loan from the bank to pay for school. The bank offered him an interest rate of 5.6%, compounded quarterly. The loan is to be repaid in 3 years. What amount did Oleg need to pay back?

Oleg took out a $16 000 loan from the bank to pay for school. The bank offered him an interest rate of 5.6%, compounded quarterly. The loan is to be repaid in 3 years. How much interest did Oleg need to pay?

Carmen must now pay $9000 to pay off her bank loan, which she borrowed 10 years ago. The loan was compounded monthly at an interest rate of 5.2%. How much did Carmen originally borrow?

Catherine wants to travel to England. The trip costs $3000 and she can afford monthly payments of $150. She can finance her trip using one of her two credit cards.
• Card 1 charges 12.7%, compounded daily.
• Card 2 charges 18.1%, compounded daily, but she gets 3% cash back on all purchases.
If Catherine wants to pay off her debt as quick as possible, how many months will it take?

Garrick is purchasing equipment for his job as a builder. The equipment costs $1000 and he wants to make monthly payments of $125. He has two different credit cards that he can use to finance the purchase.
• Card A charges 9.9%, compounded daily, but it also charges a fee of $65 for all purchases over $1000 that is immediately added to the balance.
• Card B charges 13.3%, compounded daily.
What is the total cost of the cheaper option?

Garrick is purchasing equipment for his job as a builder. The equipment costs $1000 and he wants to make monthly payments of $125. He has two different credit cards that he can use to finance the purchase.
• Card A charges 9.9%, compounded daily, but it also charges a fee of $65 for all purchases over $1000 that is immediately added to the balance.
• Card B charges 13.3%, compounded daily.
What is the least amount of interest Garrick can pay?

Cormac wants to pay off all his debts in 4 years. He has two credit cards on which he makes monthly payments:
• Card A has a balance of $3002.91 and an interest rate of 17.6%, compounded daily.
• Card B has a balance of $4712.01 and an interest rate of 15.9%, compounded daily.
Cormac wants to consolidate his debts into a line of credit with an interest rate of 8.9%, compounded monthly. How much will Cormac save by consolidating his debts?

A company replaces its trucks after the trucks have been used for 8 years. The company uses a depreciation rate of 35%. If after 3 years of use a truck is worth $27 000, what will it be worth when the company replaces it?

Nigel is purchasing a house for $225 000 that appreciates at a rate of about 3% per year. He will finance this purchase with a 20-year mortgage at an interest rate of 4.5%, compounded semi-annually, with monthly payments, where he is required to make a 15% down payment. How much is the down payment?

Vito needs a truck. He has two different options. He can lease a car for $45 per week for four years. He can also buy a new truck for $33 000. He will finance the purchase through the dealership by making regular monthly payments over 8 years at an interest rate of 3.4%, compounded monthly. If he purchases the truck, he will sell it after four years at market value. The truck depreciates at a rate of 20%. In both options, he must make a down payment of $2500. What is the total cost of the cheaper option?

How much interest will be paid on a loan of $4000 at an interest rate of 7.5%, compounded quarterly, with a term of 6 years?

Sylvia wants to become debt-free in 2 years by making regular monthly payments. She currently has an outstanding balance on two different credit cards:
• Card A has a balance of $1522.77 and an interest rate of 18.5%, compounded daily.
• Card B has a balance of $2003.45 and an interest rate of 17.7%, compounded daily.
Sylvia wants to consolidate her debts into a line of credit that charges an interest rate of 9.2%, compounded monthly. If Sylvia consolidates her debts, what will her regular monthly payments be?

Camille needs equipment for her job as an electrician. She has two options. She can either buy new equipment that costs $7100. She will finance this cost through the vendor by making regular monthly payments over 3 years at an interest rate of 7.1%, compounded monthly. At the end of 3 years, the equipment is worthless. She can also rent the equipment at a cost of $20 per day. She only needs the equipment 5 days a week. What is the total cost to rent the equipment for 3 years?

Amelia purchased a refridgerator 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? Show your work.

Gabriel is renovating his house. Since he is a builder, he is doing the renovation himself but he needs equipment. He can either rent the equipment for a full week for $2000, or he can rent the equipment for $350 per day. He estimates that it will take him 5 days to complete the renovation. What should Gabriel do? Explain.