## Sunday, February 19, 2012

### 100% CORRECT ANSWERS

The rebate and payoff of a loan before the due date is based on the:

Question 2
The average daily balance is equal to the sum of daily balances ________ the number of days in the billing cycle.

Question 3

Ray Furniture wants to buy a dining room set for \$7,000 with a 20 percent trade discount. Ray needs the cash to pay the bill and is considering discounting a 90 day note dated May 12 with a maturity value of \$6,500 at Hunt Bank at a discount rate of 13 percent on June 5. The bank discount if Ray discounts the note is _______________.

Question 4

A rebate amount is equaled to the rebate fraction __________.

Question 5

Given: \$140.10 per month Cash Price \$5,600 Down Payment \$0 Cash or Trade months with bank approved credit. Amount financed \$5,600 Finance charge \$2,806 Total Payments \$8,406 The APR  is __________.

Question 6
An annuity is:

Question 7

The APR represents the:

Question 8
Jay discounts a 100-day note for \$25,000 at 13 percent. The effective rate of interest to the nearest hundredth percent is ______ percent.

Question 9

Maggie Grace borrowed \$14,000 to travel to Italy to see her son Matty. Her loan was to be paid in 50 monthly installments of \$290. At the end of 14 months, her daughter Mia convinced her that she should pay off the loan early. Maggie is entitled to a rebate of __________.

Question 10
At the beginning of each year, Bill Ross invests \$1,400 semi-annually at 8 percent for 9 years. The cash value of the annuity due at the end of the ninth year is __________.