The Mathematics of Money

Copyright © 2008, The McGraw-Hill Companies, Inc.

Appendix A Answers to Odd-Numbered Exercises 649

Chapter 10 Section 10.1

1.

Date Activity Balance

Days at

Balance (Balance)(Days)

12 April Start $1755.28 2 $3,510.56

14 April Charged $128.53 $1,883.81 15 $28,257.15

29 April Paid 500 $1,383.81 8 $11,070.48

7 May Charged 62.45 $1,446.26 2 $2,892.52

9 May Charged 197.65 $1,643.91 3 $4,931.73

12 May 30 $50,662.44

ADB  50662.44/30  $1,688.75

3. $525.66


4. $26.36


5. a) $4.75, b) $1,305.04


6. No.


7. Yes. Prior month’s balance was not paid in full.


8. $1.37; $76.98


9. $196.60


10. a) Myrtle, b) Myrtle, c) Myrtle, d) Rew, e) Rew


11. a) More than $375, b) more than $668.90


12. a) More than $285.71, b) more than $2,980.13,
    c) less than $443.95, d) never


13. a) $0, b) $267.98


14. a) Kashong, b) Dresden, c) Crooked Lake,
    d) more than $2,333.33, e) between $421.94
    and $2,333.33


15. $531.25


16. No. Payment was made after the end of the
    grace period.


17. $13.79


18. $109.38; probably not


19. B if she’s sure she will not carry a balance;
    C otherwise


20. $21,250

Chapter 10 Section 10.2

1. $38,463


2. $16,191


3. $65,710;
   $32,775


4. $1,214.86; 3 years


5. $380.25


6. $913.05


7. $1,784.98


8. False. There may be other requirements (credit
   history, employment, etc.)


9. False. Not all lenders use these exact tests.


10. Fails both tests, Does not qualify.


11. Yes, yes, and yes.


12. $19,215


13. False. No-closing-cost options and other programs
    are available.


14. $1,812.13

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