1. Joshua is using an online loan calculator to find the fixed payment needed to pay off a $29,000 loan with 8% annual interest in 6 years. Complete the table with the appropriate information.
2. A $5,800 credit card loan with 15.5% interest can be paid off in 3 years with monthly payments of $202.48.
a. What is the total amount repaid?
b. What is the cost of credit?
3. The table shows the minimum monthly payments needed to pay off a $2,800 credit card loan with 16.5% annual interest over different lengths of time. How does paying off a credit card loan in 4 years instead of 2 years change the cost of credit?
4. Is the loan described a credit card loan or an easy access loan?
5. Julia's family needs an easy-access loan for $630 to fix their bathroom. The loan has a 436% annual interest rate. The interest period is two weeks. What is the cost of credit if Julia's family pays the loan off over eight weeks? Round to the nearest cent.
6. Aiden's family needs a $600 easy-access loan to fix their bathtub. They can repay the loan in eight weeks. Which of these loans results in a lower cost of credit? How much lower is the cost of credit? Select the correct choice below and, if necessary, replace the box to complete your choice.
A. The loan that charges 13.7% interest every two weeks costs $▪ more than the loan that charges 6.6% interest each week.
B. The loan that charges 13.7% interest every two weeks costs $▪ less than the loan that charges 6.6% interest each week.
C. The loan that charges 13.7% interest every two weeks costs the same as the loan that charges 6.6% interest each week.
7. Reasoning A $7,300 credit card loan with 13.75% annual interest is paid off in 6 years with monthly payments of $149.45.
a. What is the cost of credit for the loan?
b. How would the cost of credit for the loan change if the loan term were increased to 7 years? Explain how you can answer this without doing any calculations.