TEACHER ANSWER KEY

$1,000 Loan -- Interest Rate Scenarios

Loan Amount Interest Rate Interest Amount Total Repayment Amount Monthly Installment for One Year
$1,000 0% $0 $1,000 $83.33
$1,000 3.5% $35 $1,035 $86.25
$1,000 5.0% $50 $1,050 $87.50
$1,000 7.5% $75 $1,075 $89.58
$1,000 10% $100 $1,100 $91.67
$1,000 15% $150 $1,150 $95.83
$1,000 25% $250 $1,250 $104.17

Possible Business Loans:

Loan Loan Amount Interest Rate Interest Amount Total Repayment Amount Monthly Installment for One Year
A $15,000 4.0% $600 $15,600 $1,300.00
B $15,000 6.5% $975 $15,975 $1,331.25
C $25,000 7.5% $1,875 $26,875 $2,239.58
D $25,000 8.50 $2,000 $27,000 $2,250.00
E $100,000 5.0% $5,000 $105,000 $8,750.00
F $100,000 9.5% $9,500 $109,500 $9,125.00


COMPANY CARD ANSWERS

Jodie's Coffees and Teas
Potential Loans: A or B; Final Choice: A

Automotive Design and Parts
Potential Loans: C or D; Final Choice: C

Journey Travel Agency
Potential Loans: E or F; Final Choice: E