PLEASE HELP WITH PROBLEMS MULTIPLE CHOICE

Question

1.Kevin's hydro-electric company charges a 1.7% late fee on an overdue balance. The company charged him $0.76 for an overdue balance. What was the balance on which this fee was based?

A) $26.84

B) $44.71

C) $3.49

D) $48.28

2.Mary plans to have a garage built at a cost of $4,000. Her builder suggests that she pay $500 down, followed by 18 monthly payments of $200. What is the finance charge this builder is charging for this payment schedule?

A)$100

B) $200

C)$500

D) $300

3.For renovations on a guest room costing $24,000, Trevor pays $2,000.00 cash to the builder (from his savings account) and asks his bank for a personal loan for the balance. His bank offers financing at 7.25% compounded monthly, for a term of 5 years, payable monthly. What is Trevor's monthly payment?

A) $526.30

B) $438.23

C) $408.35

D) $486.28

4.ChaChing Payday Loans advertises that a payday loan will be charged $25.00 per $150.00 borrowed. If repaid in cash on or before the due date, the customer receives a rebate of $5.00. If the due date is in 10 days, calculate the daily interest rate on this short term loan, assuming the loan is paid off by the due date. What would this daily interest rate be equivalent to if it were expressed as an annual interest rate?

A) 2.6%

B) 1.3%

C) 486.7%

D) 48.7%

Answer 1

(1)

0.76 = 1.7% of X

0.76 = 0.017 X

760 = 17X

760/17 = X

X = 44.71

(2)

500 + 18*200 = 500 + 3600 = 4100

so 4100 - 4000 = $100

(3) 7.25% is the annual rate

22000 *(1 + 7.25/1200)^60 divided by 60

= 526.90

(4)

(25 - 5) is x% of 150

20 is x% of 150

20 = x * 150

2/15 = x

x = 13 and 1/3%

dividing by 10 gives 1.3333...%