Anna Conda purchased a new Toyota Tundra pickup truck for $35,000 and financed $31,000 with a 5 year, 4% loan.

Following the format of the loan disclosure statement, answer the following questions.

QUESTION 1

What is the APR of the loan?

6%

5%

4%

3%

QUESTION 2

What is the total of all of the loan payments made?

$34,261

$34,970

$33,264

$32,834

QUESTION 3

What is the actual amount borrowed?

$35,000

$33,000

$31,000

$29,000

QUESTION 4

What is total finance or interest cost associated with the loan?

$3434

$3261

$3070

$2964

QUESTION 5

The interest charged on this loan is calculated by

simple interest

compound interest

 

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