Choosing and Using a Credit Card Responsibly

1. Clare wants to buy a used wide-screen TV that sells for $2,000 cash. She will make a down payment of $1,000 and then six monthly payments of $200. What is the full installment price and the annual interest rate?
   
   
2. Lauren has his heart set on a new GPS that will cost him $325 if he pays cash and $400 if he pays by installments. If the down payment is $50, how much will he pay in each of 12 monthly payments? What is the annual interest rate on this purchase?
   
   
3. Jake is looking to buy a used car that will cost him $10,000. He will make a down payment of $5,000 and then twenty four payments of $225. What is the full installment price and the annual interest rate?
   
   
4. Vanessa needs to replace the windows in her mobile home. Installed they will cost her wants to buy a new sewing machine that sells for $2,500 cash. She plans to make a down payment of $1000 and then nine monthly payments of $95. What is the full installment price and the annual interest rate?
   
   
5. Armando's motor cycle needs a new motor. It will cost him $825 if he pays cash and $700 if he pays by installments. If the down payment is $275 on the motor, how much will he pay in each of 12 monthly payments? What is the annual interest rate on this purchase?
   
   
6. The Sharps want to finance a cruise to Alaska for $2,800. The offer is for no money down with twenty four payments of $150. What is the full installment price and the annual interest rate?
   
   
7. Ana is moving into her own apartment and wants to purchasing a Home Entertainment Center. The cost of the HIC is $1,350 if paid in cash and $1,495 if she pays in installments. If the down payment is $450, how many months will it take her to pay off the installment if the annual interest rate 9%?