March 26

To reveiw what we went over yesterday, complete the following questions on Microsoft Word and turn in for a grade! Have a great weekend!

1) Give me a definition of the following words:

A) Interest - B) Principal - C) Rate of Interest - D) Time

2) Donny needs a loan for a new surfboard. He gets a loan from the bank of $1200. If the interest rate is 6%, and the time is 1 year and 8 months, what is the amount of interest that will be due at the end of the period?

3) If the principal on a loan is $10,000, the interest rate is 14 1/2%, and the time is 2 years, what is the total worth of the principal at the end of the 2 years? (Add the interest to the principal)

4) Frederico needs to borrow $500 for only nine months. The bank charges 5½% interest. How much will Freddie owe the bank?

5) Joe borrows $900 to fix his car. The bank charges 7% interest for two years. Find the TOTAL amount Joe will owe the bank.

6) If you have $500 dollars in a saving account that has a return of 6.5%, how much will the $500 be worth at the end of 4 years?

7) Go to http://www.interest.com/ and look on the right hand side of the page. What is the national mortgage rate for a 30 year fixed loan?

8) With this rate, how much will a $200,000 loan cost at the end of the 30 years?

9) What is the difference in a variable interest rate, and a fixed interest rate?

10) What is the benefit of having a lower interest rate vs. a higher interest rate?

11) Check your hobo, or do what you want for the rest of class!

PRINT AND TURN IN! HAVE A GREAT WEEKEND! I WON'T BE HERE MONDAY, SEE YOU TUESDAY!

-Shamalan Wright