More on Installment Loans

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More on Installment Loans Lesson 5.4

Paying Off Simple Interest Installment Loans

I=P R T Formulas… Current Month’s Interest Final Payment Previous Balance + = Sum of previous payments and final payment Interest Saved Total Payback = -

Figure out the repayment schedule for and $1800 loan at 12% interest for the first three months of a six month loan. Repayment Schedule Payment Number Monthly Payment Amount for Interest Amount for Principal Balance ($1800) 1 2 3

Find the final payment if it is all paid off at the end of the fourth month.

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Chuck Norris took out an installment loan of $2500 to buy a super-computer. The finance charge is $187.35. He planned to repay the loan in 18 monthly payments. Find the APR

A 70” TV is on sale for $1200 or $166. 10 per month for 12 months A 70” TV is on sale for $1200 or $166.10 per month for 12 months. Find the APR

Lesson 5.4: More on Installment Loans Questions? Summarize your notes Homework Worksheet