Exam 13: Personal Financial Management

Solve the problem. If necessary, use the table of monthly payments below. Round your answer to the nearest cent. Monthly Payments to Repay Principal and Interest on a $1000 Mortgage -Find the monthly payment needed to amortize principal and interest for the following fixed-rate mortgage. Mortgage amount: $80,300 Term of mortgage: 20 years Interest rate: 10.5%

What is the meaning of "unearned" interest?

Find the compound interest earned by the deposit. Round to the nearest cent. -$3000 at 2% compounded annually for 10 years

Solve the problem. If necessary, use the table of monthly payments below. Round your answer to the nearest cent. Monthly Payments to Repay Principal and Interest on a $1000 Mortgage -Find the monthly payment needed to amortize principal and interest for the following fixed-rate mortgage. Mortgage amount: $77,000 Term of mortgage: 15 years Interest rate: 11.5%

Find the future value of the deposit if the account pays simple interest. -$2000 at 2.4% for 4 years

Find the total monthly payment, including taxes and insurance, on the following fixed-rate mortgage. Amount of loan: $105,250 Interest rate: 10% Term of loan: 25 years Annual taxes: $3001 Annual insurance: $466

Find the APR (true annual interest rate), to the nearest half percent, for the following loan. -Amount Financed $= \$ 1200$ Finance Charge $= \$ 90$ Number of Monthly Payments $= 12$

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity. -Finance charge: $315 Total number of payments: 23 Remaining number of payments, when paid in full: 4

Find the compound interest earned by the deposit. Round to the nearest cent. -$7824 at 4% compounded continuously for 4 years

Use the compound interest formula to compute the future value of the investment. -$5000 at 6.5% compounded monthly for 4 years

Find the present value for the given future amount. Round to the nearest cent. -A = $37,000, 10 years r = 8% compounded semiannually

Solve the problem. -Find the final value, after all taxes are paid, for the following retirement account. Assume that taxes are not deferred and that deposits are made at the end of each year. Marginal tax rate: 28\% Regular deferred contribution: \ 2500 Annual rate of return: 5\% Annual rate of return: 5\% Number of years: 10

Solve the problem. -For the given stock investment, find the capital gain:

Annette has a bank card. Her billing date is July 4. The balance due at that date was $870. She sent a payment of $400, which the bank received on July 12. She made a new purchase for $200 on July 31. What will the finance charge be for August 4 if the bank charges 1.25% per month and uses the Average daily balance method?

Find the total return earned by the given bond. -

Solve the problem. -The following information on Company X appears in a stock table. Find the cost to purchase 180 shares of Company X at the day's closing price. Assume that the transaction is broker-assisted and includes typical discount broker's commissions as follows: Principal Amount Commission Up to \ 2499.99 \ 35+1.7\% of principal \ 2500.00-\ 6249.99 \ 65+0.66\% of principal \ 6250.00-\ 19,999.99 \ 76+0.34\% of principal

Solve the problem. -An item is purchased for $800 with a down payment of $50. There is a finance charge of $30. Find the monthly payment if 10 payments are made.

By completing the first two months of the amortization schedule for the following fixed rate mortgage, determine the payment on the principal in the second month. Mortgage: $131,000 Interest rate: 9.5% Term of loan: 25 years You will need the following table of monthly payments:

Find the finance charge on the open-end charge account. Assume interest is calculated on the unpaid balance of the account. -Unpaid Balance Monthly Interest Rate

$4000 at 4.07% for 28 months