Assignment 2 - MAT 1100 Quantitative Reasoning

MAT 1100 Quantitative Reasoning Module 4 Lesson
5 Assignment 2
Student Name:
Solve the problem.
Suppose you want to buy a new car that costs $18,500. You have no cash – only your old car, which is worth
$2,000 as a trade-in.
1) How much do you need to finance buy the new car?
Solution: Cost of new car = $18,500
Cost of old car = $2,000
Finance buy = $18,500- $2,000 = $16,500
2) The dealer says the interest rate is 4% add-on for 4 years. Find the total interest.
Solution:
3) Find the total amount to be repaid.
Solution:
4) Find the monthly payment.
Solution:

MAT 1100 Quantitative Reasoning Module 4 Lesson
5 Assignment 2
5) Find your total cost, for the new car plus interest.
Solution: Total cost = Cost of new car + Interest
Total cost = $18,500 + $2640 = $21,140
Solve the problem.
6) The unpaid balance in an account at the beginning of December was $173. A payment of was made on
December 22. No new purchases were made in December. The finance charge rate was per month of the
average daily balance. Find the new balance at the end of December.
Solution: From December 1 to December 21, the unpaid balance was $173.
From December 22 to 31 December, the unpaid balance was $173 - $85 = $88
Total balance:
December 1 to December 21 is
December 22 to December 31 is
Total balance =
Average daily balance =
Finance charge =
7) On the July 5 billing date, David had a balance due of $843.47 on his credit card. The transactions during the
following month were:
The interest rate on the card is 1.1% per month. Using the average daily balance method, find the finance charge
on August 5 (July has 31 days).