Below are a couple more questions you can attempt above and beyond what is in your package. You may print this page out if you wish. Answers are given at the bottom of the page. If you are having difficulties, refer to the calculation example for this lesson. You will need the personal loan payment calculator table from your booklet, or you can use the one located here. (The table in your book has more rows to support calculations for more interest rates.)

1. Webster wants to buy a new laptop computer. It will cost him a total of $3350 after taxes and shipping. He will borrow this money from the bank at a 5% interest rate to be re-paid in three years. Calculate:
   1. Webster's monthly payment.
   2. The amount that Webster paid to the bank in those 3 years.
   3. The amount of interest that Webster has paid.

    

2. Freddy McGoo wants to purchase a new pair of pants worn by a famous television star. (Rupert from Survivor). The pants cost $1700 plus GST and PST. He will need to borrow the money from the bank using a 5 year loan at 3.5% interest. Calculate:
   1. How much the pants cost after taxes have been added on.
   2. Freddy's monthly payment.
   3. The amount of interest that Freddy has paid after the five years.

    

Solutions

1.
a) $100.57
b) $3620.52
c) $270.52

2.
a) $1938.00
b) $35.25
c) $177.00