Name: 

Gila took out a loan from the bank to buy a new car that costs $22 500. The bank offered her a simple interest rate of 4.3%. The loan is to be repaid in 5 years. How much interest did Gila need to pay?

Anya wants to renonvate her house. To pay for the renovation, she took out a loan of $30 000 with an interest rate of 2.9%, compounded semi-annually. The loan must be repaid in 15 compounding periods. How much interest will Anya pay?

Carlos was approved for a mortgage to finance his new house that he purchased for $325 000. He made a down payment that was 20% of the purchase price. The mortgage is compounded semi-annually at an interest rate of 4.2%. Carlos will repay the mortgage in 25 with regular monthly payments. How much interest will he have to pay?

Dante wants to buy a truck that costs $35 000 and he has a two different options to finance the purchase.
Option A: Finance the purchase through the dealership by making regular weekly payments for 4 years at an interest rate of 5.0%, compounded daily.
Option B: Finance the purchase with a bank loan by making regular monthly payments for 4 years at an interest rate of 5.0%, compounded daily.
What is the total cost of the cheaper option?

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?

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.
What is the total cost of the cheaper option?

Joanna needs to buy textbooks for school that cost $780. She cannot afford them now but she has two different options to finance the cost.
Option A: Get a loan from her friend that must be paid back in 3 months with a $50 fee.
Option B: Use her credit card which charges 18.8%, compounded daily. She plans to make the minimum monthly payment of $10 on the debt for 3 months, then pay off the remaining debt in full.
What is the total cost of the Option B?

Vennie has purchased a statue from an artist in Italy. The statue costs $19 750 and the cost to safely ship the statue is $975. He wants the pay off the debt in 4 years with regular monthly payments. He has two options to finance the purchase.
• Finance the cost through the artist at an interest rate of 20%, compounded monthly, with the incentive that the artist will pay the shipping cost.
• Finance the cost through the bank at an interest rate of 15.7%, compounded monthly.
What is the least amount of interest he can pay?

Yu needs a car. He can lease a car for 3 years for $300 per month and a down payment of $4100. He can purchase a new car for $28 000, which would be financed with a bank loan at an interest rate of 5.2%, compounded monthly, and a down payment of $3700. He would pay off this loan with regular monthly payments. He can also rent a car at $75 per day. What is the total cost of leasing the car?

Johanna needs a place to live. She can either rent an apartment or buy a new house. Renting costs $300 per week. She can finance the purchase of a house that costs $280 000 with a mortage. She has negotiated with the bank a mortgage of 87% of the purchase price at an interest rate of 3.9%, compounded semi-annually. The term of the mortgage is 15 years and it requires regular monthly payments. The house depreciates at a rate of 4%. If she moves out after 6 years, what will be the market value of the house when she moves out?

Courtney has a debt of $852.31 and she is being charged an interest rate of 5.3%, compounded monthly. Courtney wants to pay off this debt by making only the minimum monthly payments which are $10 or 4% of the balance, whichever is greater. How long will it take Courtney to pay off her debt?

Winston needs a boat for his job as a fisherman. He can buy a new boat for $44 000. He will finance the purchase with a bank loan at an interest rate of 3.6%, compounded monthly, and he will make regular monthly payments for 6 years. After 6 years, the boat will have a salvage value of $5000. He can lease a boat for $750 per month with a yearly down payment of $800. He can rent a boat for $50 per day. He only needs the boat 4 days a week. If he only uses the boat for 6 years, what is the total cost of buying the boat?

Winston needs a boat for his job as a fisherman. He can buy a new boat for $44 000. He will finance the purchase with a bank loan at an interest rate of 3.6%, compounded monthly, and he will make regular monthly payments for 6 years. After 6 years, the boat will have a salvage value of $5000. He can lease a boat for $750 per month with a yearly down payment of $800. He can rent a boat for $50 per day. He only needs the boat 4 days a week. If he only needs a boat for 6 years, what is the total cost of leasing the boat?

Carla needs to borrow $6500 to pay for school. She has two options:
• Borrow the money from the bank at an interest rate of 3.9%, compounded monthly, with monthly payments of $400.
• Borrow the money from her parents at an interest rate of 3.5%, compounded monthly, with monthly payments of $250.
a) How long would it take Carla to pay off both loans? Show your work.
b) What is the total amount Carla would pay on both loans? Show your work.
c) Which option would you recommend Carla do? Explain.

Jessica and Amir want to become debt-free at the same time. Jessica has a balance of $3812.55 on her credit card, which charges an interest rate of 13.2%, compounded daily, and she makes regular monthly payments of $200. Amir has a balance of $2921.04 on his credit card and he makes regular monthly payments of $150. If they both become debt-free at the exact same time, what annual interest rate, compounded daily, does Amir’s credit card charge? Show your work.