Drill 19 ·
AP Business with Personal Finance Personal Saving and Borrowing Drill 19 is a practice drill. It contains 5 original questions created by Brian Stewart, a Barron's test prep author with over 20 years of tutoring experience.
A personal-finance drill on saving toward a goal and comparing two simple-interest loan options; uses an invented household and original figures.
Dana Okafor is saving toward the down payment on a used car and comparing two ways to finance the rest of the purchase. The first table shows Dana's monthly savings plan. The second table compares two one-year simple-interest loans for the $4,000 balance that savings will not cover. The figures are hypothetical.
Figure 1. Dana's Down-Payment Savings Plan
| Item | Amount |
|---|---|
| Down-payment goal | $3,240 |
| Amount saved each month | $360 |
| Months saved so far | 5 |
| Amount saved so far | $1,800 |
Figure 2. Two One-Year Loan Options for the $4,000 Balance (simple interest)
| Item | Option A: Credit Union | Option B: Dealer |
|---|---|---|
| Annual interest rate | 8% | 12% |
| Interest for one year | $320 | $480 |
| Total repaid after one year | $4,320 | $4,480 |