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A condo in Orange Beach, Alabama, listed for $1.4 million with 20% down and financing at 5% for 30 years.
What would the monthly payment be?
$6,014.40
 
Darlene Ramirez bought a home for $140,000. She put 20% down with a mortgage rate of 7.5% for 25 years.
Her yearly payments are:
$9,932.16…
 
Given a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?
$50,236.80
 
John Sullivan bought a New Brunswick boat for $17,000.
He made a $2,500 down payment on it. The bank's loan was for 60 months.
Finance charges totaled $4,900. His monthly payment is:
$323.33
 
The APR represents the:
True effective annual rate of interest charged by seller
 
Jen purchased a condo in Naples, Florida, for $699,000. She put 20% down and financed the rest at 5% for 35 years.
What are Jen's total finance charges?
$626,863.20
 
Ed Sloan bought a new Explorer for $22,000. He put down $7,000 and paid $290 for 60 months.
The total finance charge to Ed is:
$2,400
 
The finance charge is equal to the total of all monthly payments:
Minus amount financed…
 
Justin Chan bought a Scion car for a price of $8,200, putting down $800,
and financing the remainder with 60 monthly payments of $179.99.
The APR by table lookup is (use the tables in the handbook):
Between 16.00 and 16.25%
 
Which one of the following statements is incorrect?
APR is the true effective annual interest charged by sellers.
The Truth in Lending Act regulates interest charges…
APR represents the true effective annual rate of interest.
None of these
 
Dan Miller bought a new Toyota truck for $28,000.
Dan made a down payment of $6,000 and paid $390 monthly for 70 months.
The total finance charge was:
$5,300
 
Amount financed is equal to:
Cash price minus down payment
 
Given:
$140.10 per month; cash price $5,600; down payment $0
Cash or trade months with bank-approved credit;
amount financed $5,600
Finance charge $2,806
Total payments $8,406
(Use the tables in the handbook.)
The APR by table lookup is:
17.25% - 17.50 %
 

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Amanda Chin purchased a home for $296,000;
she put 20% down with a mortgage rate of 6% for 30 years.
What is Amanda's monthly payment?
$1,420.80
 
Most companies calculate the finance charge on credit card accounts as a percentage of the:
Average daily balance

Given the following: 

29 day billing cycle
4/17 Billing date previous balance    1,100
4/27 Payment                                           700
4/29 Charge                                              300
5 7 Payment                                               50

The average daily balance is:
$910.34
$755.17
$810.43
$755.71
None of these…
 
 
The average daily balance is equal to the sum of daily balances:
Divided by number of days in billing cycle
 
Open credit in a revolving charge plan results in:
As many charged purchases till credit limit is reached
 
In calculating the daily balance, cash advances are:
Added in
 
Mia Lane bought a high-definition television for $7,500. Based on her income, she could afford to pay back only $600 per month.
There is 1 ½% monthly interest charge on the unpaid balance. The U.S. Rule is used in the calculation. At the end of month 1,
the balance outstanding is:
$6,012.50
$5,012.50
$4,012.50
$3,012.50
None of these
 
Joe Jay purchased a new colonial home for $260,000, putting down 20%.
He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage.
The principal after the first payment had a balance outstanding of:
$207,720.59
 
A variable rate mortgage means:
The interest rate is not fixed
 
A $104,000 selling price with $24,000 down at 8 1/2% for 25 years results in a monthly payment of:
$644.80
 
Points represent:
An additional cost of receiving the mortgage

Jen purchased a condo in Naples, Florida, for $699,000. She put 20% down and financed the rest at 5% for 35 years.
What amount did Jen owe in interest?
$626,863.20

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Homework Chapter    01  02  03  04  05  06  07  08  09  10  11  12  13  14  15  16 17 18  19  20  21  22                 Need A Tutor?     Need Homework Help?

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Megan Mei is charged 2 points on a $120,000 loan at the time of closing.
The original price of the home before the down payment was $140,000.
The points in dollars cost Megan:
$2,400

Craig Hammer purchased a new condominium for $225,000.
The bank required a $30,000 down payment. Assuming a rate of 8% on a 25-year mortgage,
Craig's monthly payment is (use the table in the handbook):
$1,505.40

Abe Aster bought a new split level for $200,000.
Abe put down 30%. Assuming a rate of 11 1/2% on a 30-year mortgage, Abe's monthly payment is
(use the table in the handbook):
$1,387.40

Beverly Frost bought a home for $190,000 with a down payment of $19,000 at 7% for 25 years.
Since then the rate has risen to 9%. How much more would her monthly payment be if she bought the house at 9%?
$227.43

The reduction of principal each month is equal to the payment minus the interest.
True
 
The total cost of interest is equal to the total of all monthly payments:
Minus amount of mortgage
 
Amanda Chin purchased a home for $296,000; she put 20% down with a mortgage rate of 6% for 30 years.
What is Amanda's monthly payment?
$1,420.80
 
Jill Diamond bought a home for $190,000 with a down payment of $65,000. The rate of interest was 7% for 35 years.
Her monthly mortgage payment is:
$798.75
 
Graduated payments result in the borrower paying:
Less at the beginning of the mortgage
 
Lizzy Clar bought a home for $160,000, putting down $30,000. The rate of interest is 7% for 25 years.
The total yearly mortgage payment is:
$11,029.20

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