Practice questions for exam

Question

anonymous · Answer

attachment

anonymous · Answer

attachment

ganeshie8 · Answer

Cost of car = 14,390

ganeshie8 · Answer

She has $1000 allowance and is making 1500 down payment,
so she will be taking loan for the remaining money :

money borrowed as loan =  14390 - 1000 - 1500

anonymous · Answer

$11,890

ganeshie8 · Answer

correct, thats the loan amount borrowed

anonymous · Answer

how would i calculate the interest

ganeshie8 · Answer

calculate monthly payment first

anonymous · Answer

$261.08

ganeshie8 · Answer

yes,
wat about yearly payment ?
and how much she pays to bank in 4 years ?

anonymous · Answer

$ 3132.96 is the yearly payment .

anonymous · Answer

how do i find out what she pays the bank in 4 years ?

ganeshie8 · Answer

multiply yearly payment by 4

anonymous · Answer

$12,531.84

ganeshie8 · Answer

yes, thats the amount she pays in 4 years

ganeshie8 · Answer

take the difference

ganeshie8 · Answer

for a loan of $11,890
she paid $12,531.84

so how much she paid in interest ?

anonymous · Answer

$641.84

anonymous · Answer

So then would 14,031.84 be the total payment ?

ganeshie8 · Answer

correct ! http://www.wolframalpha.com/input/?i=11890%2F1000*21.958*12*4+%2B+1500

anonymous · Answer

K, last part of the questions says

 " Rhianna is 22 years old. She buys 50/100/25 liability insurance, and collision and comprehensive insurance, each with $500 deductibles. What is her total annual premium?"


the chart is included in the second attachment . I'm not really sure how to calculate this . I think I get the 50/100/25 part but thats it .

ganeshie8 · Answer

how to interpret 50/100/25 ?

anonymous · Answer

just the general how to calculate her premium

ganeshie8 · Answer

Liability insurance =  310 + 175
collision insurance = 148
comprehensive insurance = 85

ganeshie8 · Answer

add them all