# Personal Loans

 What is the total finance charge for a \$4,250 loan at 13.25% interest compounded monthly for 24 months? c.\$611.20 Determine the finance charge on an \$8,000 loan with a monthly payment of \$162.80 for 60 months. c.\$1,768.00 Tim and Sally are taking out a personal loan to pay for their wedding expenses. The loan is for \$9,000 and comes with an interest rate of 9.5% compounded monthly. The couple wants to pay the loan off as quickly as possible, keeping the monthly payments below \$250. The lender offers repayment plans in 12 month increments. How long of a loan should they request? c.48 months Tom would like to take out a secured loan to help pay for a vacation this summer. He has offered his car as collateral. His car is worth \$3,500. His bank can offer loans for 80% of collateral value. The vacation he has planned will cost \$4,750. Approximately how much additional collateral will Tom need to offer in order to borrow enough to go on his vacation as planned? c.\$2,437.50 In calculating the monthly payment for a five-year loan, what value should be used for n, the number of periods over which the loan is repaid, as it appears in the following formula? c.60 What would the monthly payment be for a \$5,000 loan with a 6.25% interest rate compounded monthly spread over 60 months? b.\$97.25 In a secured loan, collateral is _____. a.valuable property that the borrower promises to give the lender in the event of default on the loan What would the monthly payment be for a \$5,000 loan with a 6.25% interest rate compounded monthly spread over 60 months? b.\$97.25
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