1.Dave borrowed $950 for one year and paid $52.50 in interest. The bank charged him a $4.50 service charge. What is the finance charge on this loan?
2.Rebecca wants to buy a new saddle for her horse. The one she wants usually costs $600, but this week it is on sale for $550. She does not have $550, but she could buy it with $60 down and pay the rest in 6 months with 9 percent interest. How much will Rebecca save by buying the saddle this week?
3.You can buy an item for $135 on a charge with the promise to pay $135 in 90 days. Suppose you can buy an identical item for $132 cash. If you buy the item for $135, you are in effect paying $3 for the use of $132 for three months. What is the effective annual rate of interest? Ignore interest rate compounding.
4.Dave borrowed $600 on January 1, 2006. The bank charged him a $5.00 service charge and interest was $44.20. He paid the $600 in 12 equal monthly payments, what was the APR?
5.Sidney took a $200 cash advance by using checks linked to her credit card account. The bank charges a 3 percent cash advance fee on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived.