Calculate the finance charge on a home equity loan based on


1. On April 29, Rayma Ramirez made a payment on her 7.75% car loan. After making the payment, the balance was $1,844.22. Rayma got her income tax refund, and on May 21 she pays off the loan. What is the payoff amount?

$1,844.22

$142.93

$1,987.15

$1,852.83

2. Calculate the finance charge on a home equity loan based on an average daily balance of $97,552 during a 30-day billing period. The lender charges 5.75% interest and calculates interest based on a daily periodic rate. Assume a 365-day year and round the daily periodic rate to 8 decimal places.

$467.44

$15.37

$461.03

$1,536.78

3. Juan and Lisa are getting prequalified for a mortgage loan. Juan earns $3,800 a month; Lisa is a homemaker. Based on the price home they hope to buy, the lender estimates property taxes at $2,450 a year and insurance at $680. Juan has a car payment of $322; Lisa’s car is paid off. They each have a minimum credit card payment of $10. Based on a back-end ratio of 41%, what is the maximum monthly payment they qualify for?

$1,558.00

$1,297.17

$955.17

$2,242.00

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Financial Management: Calculate the finance charge on a home equity loan based on
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