Question 1

Solve the problem.
-The following information on Company X appears in a stock table. Find the dividend for Company X.

Accepted Answer

A) 6.3 cents per share 
B) 32 cents per share 
C) 63 cents per share 
D) $33.07 per share 
A) 6.3 cents per share 
B) 32 cents per share 
C) 63 cents per share 
D) $33.07 per share

Question 2

Use the compound interest formula to compute the future value of the investment.
-$5500 at 8% compounded monthly for 7 years

Accepted Answer

A) $7688.66 
B) $9610.82 
C) $196,473.48 
D) $5761.86 
A) $7688.66 
B) $9610.82 
C) $196,473.48 
D) $5761.86

Question 3

Solve the problem.
-An item is purchased for $5200 with a down payment of $1000. There is a finance charge of $1100. Find the monthly payment if 36 payments are made.

Accepted Answer

A) $115.67 
B) $175 
C) $147.22 
D) None of the above is correct. 
A) $115.67 
B) $175 
C) $147.22 
D) None of the above is correct.

Question 4

On April 1, the unpaid balance in an account was $218. A payment of $30 was made on April 11. On April 21, a $40 purchase was made. The finance charge rate was 1.15% per month of the
Average daily balance. Find the new balance at the end of April.

Accepted Answer

A) $190.28 
B) $220.28 
C) $229.15 
D) $230.43 
A) $190.28 
B) $220.28 
C) $229.15 
D) $230.43

Question 5

Find the compound interest earned by the deposit. Round to the nearest cent.
-$\$ 4000$ at $1 \%$ compounded quarterly for $1 \frac { 1 } { 2 }$ year

Accepted Answer

A)  $\$ 60.15$ 
B)  $\$ 60.38$ 
C)  $\$ 240.00$ 
D)  $\$ 246.08$ 
A)  $\$ 60.15$ 
B)  $\$ 60.38$ 
C)  $\$ 240.00$ 
D)  $\$ 246.08$

Question 6

Use the actuarial method to find the payoff amount for the loan paid in full before its due date.
-Amount Financed: $26,000 Regular Monthly Payment: $820.73
Total Number of Payments scheduled: 36
Loan repaid in full instead of making: 18th payment

Accepted Answer

A) $14,645.55 
B) $13,824.82 
C) $13,759.76 
D) $13,927.01 
A) $14,645.55 
B) $13,824.82 
C) $13,759.76 
D) $13,927.01

Question 7

Solve the problem.
-Bill makes a $167.33 per month payment for 3 years to pay off a $4000 loan. What was the add-on interest rate?

Accepted Answer

A) 10.3% 
B) 8.5% 
C) 16.9% 
D) None of the above is correct. 
A) 10.3% 
B) 8.5% 
C) 16.9% 
D) None of the above is correct.

Question 8

In order to purchase a home, a family borrows $86,000 to be paid back over a 25-year period in equal monthly payments. What percentage of the first monthly payment goes toward the principal
If the annual interest rate is 8%? If the annual interest rate is 12%?

Accepted Answer

A) 12.7%; 6.1% 
B) 14.1%; 5.9% 
C) 86.4%; 94.9% 
D) 13.6%; 5.1% 
A) 12.7%; 6.1% 
B) 14.1%; 5.9% 
C) 86.4%; 94.9% 
D) 13.6%; 5.1%

Question 9

The following problem involves adjustable-rate mortgage. You will need a table of monthly payments.
-Suppose your mortgage is $55,400 for 25 years. The index rate is 7.5% and the margin is 2.5%. Find the initial monthly payment.

Accepted Answer

A) $503.42 
B) $513.42 
C) $415.50 
D) None of the above is correct. 
A) $503.42 
B) $513.42 
C) $415.50 
D) None of the above is correct.

Question 10

Use the Rule of 78 to find the payoff amount for the loan paid in full before the date of maturity.
-Finance charge: $5415 Total number of payments: 149
Amount per payment: $319
Remaining number of payments, when paid in full: 12

Accepted Answer

A) $4109.20 
B) $3796.02 
C) $3790.20 
D) $4115.02 
A) $4109.20 
B) $3796.02 
C) $3790.20 
D) $4115.02

Question 11

Solve the problem. Round to the nearest cent.
-The unpaid balance in an account on December 1 was $174. A payment of $45 was made on December 18. The finance charge rate was 1.2% per month of the average daily balance. Find the
Finance charge for the month of December.

Accepted Answer

A) $1.84 
B) $3.64 
C) $1.55 
D) $1.74 
A) $1.84 
B) $3.64 
C) $1.55 
D) $1.74

Question 12

How many monthly payments of $139.44 are necessary to pay off a $4000 loan if the add-on interest rate is 8.5%?

Accepted Answer

A) 40 payments 
B) 30 payments 
C) 36 payments 
D) None of the above is correct. 
A) 40 payments 
B) 30 payments 
C) 36 payments 
D) None of the above is correct.

Question 13

Find the total monthly payment, including taxes and insurance, on the following fixed-rate mortgage.
Amount of loan: $76,000
Interest rate: 11%
Term of loan: 20 years
Annual taxes: $1404
Annual insurance: $337

Accepted Answer

A) $910.40 
B) $954.48 
C) $784.46 
D) $929.55 
A) $910.40 
B) $954.48 
C) $784.46 
D) $929.55

Question 14

A student has a total of $3000 in student loans that will be paid with a 48-month installment loan with monthly payments of $73.94. Determine the APR of the loan to the nearest one-half of a
Percent.

Accepted Answer

A) 7.5% 
B) 8.0% 
C) 9.5% 
D) 8.5% 
A) 7.5% 
B) 8.0% 
C) 9.5% 
D) 8.5%

Question 15

Solve the problem.
-The following information on Company X appears in a stock table. Find the 52-week low for Company X.

Accepted Answer

A) $29.26 
B) $35.64 
C) $33.58 
D) $23 
A) $29.26 
B) $35.64 
C) $33.58 
D) $23

Question 16

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: $135,200
Term of mortgage: 30 years
Interest rate: 9.5%

Accepted Answer

A) $1136.83 
B) $1186.48 
C) $1181.24 
D) $1236.73 
A) $1136.83 
B) $1186.48 
C) $1181.24 
D) $1236.73

Question 17

Find the compound interest earned by the deposit. Round to the nearest cent.
-$4100 at 2.9% compounded semiannually for 5 years

Accepted Answer

A) $634.83 
B) $594.50 
C) $306.00 
D) $630.00 
A) $634.83 
B) $594.50 
C) $306.00 
D) $630.00

Question 18

Use the Rule of 78 to find the payoff amount for the loan paid in full before the date of maturity.
-Amount Financed: $25,000 Regular Monthly Payment: $656.25
Total Number of Payments scheduled: 48
Loan repaid in full instead of making: 27th

Accepted Answer

A) $12,504.46 
B) $13,379.78 
C) $13,160.71 
D) $12,571.14 
A) $12,504.46 
B) $13,379.78 
C) $13,160.71 
D) $12,571.14

Question 19

Assume that the given mutual fund investment earns monthly returns that are reinvested and subsequently earn at the
same rate. Find the beginning value of the investment, first monthly return, or effective annual rate of return as indicated.
-  Find the annual rate of return.

Accepted Answer

A) 1189.54% 
B) 32.9% 
C) 31.4% 
D) 27.6% 
A) 1189.54% 
B) 32.9% 
C) 31.4% 
D) 27.6%

Question 20

Solve the problem.
-The cash price of a dehumidifier is $205. The customer paid $50 as a down payment. The remainder will be paid in 6 monthly installments of $26.86 each. Find the amount of the finance
Charge.

Accepted Answer

A) $12.16 
B) $6.16 
C) $43.84 
D) $161.16 
A) $12.16 
B) $6.16 
C) $43.84 
D) $161.16

Solve the problem. -The following information on Company X appears in a stock table. Find the dividend for Company X.

Use the compound interest formula to compute the future value of the investment. -$5500 at 8% compounded monthly for 7 years

Solve the problem. -An item is purchased for $5200 with a down payment of $1000. There is a finance charge of $1100. Find the monthly payment if 36 payments are made.

On April 1, the unpaid balance in an account was $218. A payment of $30 was made on April 11. On April 21, a $40 purchase was made. The finance charge rate was 1.15% per month of the Average daily balance. Find the new balance at the end of April.

Find the compound interest earned by the deposit. Round to the nearest cent. - $\$ 4000$ at $1 \%$ compounded quarterly for $1 \frac { 1 } { 2 }$ year

Use the actuarial method to find the payoff amount for the loan paid in full before its due date. -Amount Financed: $26,000 Regular Monthly Payment: $820.73 Total Number of Payments scheduled: 36 Loan repaid in full instead of making: 18th payment

Solve the problem. -Bill makes a $167.33 per month payment for 3 years to pay off a $4000 loan. What was the add-on interest rate?

In order to purchase a home, a family borrows $86,000 to be paid back over a 25-year period in equal monthly payments. What percentage of the first monthly payment goes toward the principal If the annual interest rate is 8%? If the annual interest rate is 12%?

The following problem involves adjustable-rate mortgage. You will need a table of monthly payments. -Suppose your mortgage is $55,400 for 25 years. The index rate is 7.5% and the margin is 2.5%. Find the initial monthly payment.

Use the Rule of 78 to find the payoff amount for the loan paid in full before the date of maturity. -Finance charge: $5415 Total number of payments: 149 Amount per payment: $319 Remaining number of payments, when paid in full: 12

Solve the problem. Round to the nearest cent. -The unpaid balance in an account on December 1 was $174. A payment of $45 was made on December 18. The finance charge rate was 1.2% per month of the average daily balance. Find the Finance charge for the month of December.

How many monthly payments of $139.44 are necessary to pay off a $4000 loan if the add-on interest rate is 8.5%?

Find the total monthly payment, including taxes and insurance, on the following fixed-rate mortgage. Amount of loan: $76,000 Interest rate: 11% Term of loan: 20 years Annual taxes: $1404 Annual insurance: $337

A student has a total of $3000 in student loans that will be paid with a 48-month installment loan with monthly payments of $73.94. Determine the APR of the loan to the nearest one-half of a Percent.

Solve the problem. -The following information on Company X appears in a stock table. Find the 52-week low for Company X.

Find the compound interest earned by the deposit. Round to the nearest cent. -$4100 at 2.9% compounded semiannually for 5 years

Use the Rule of 78 to find the payoff amount for the loan paid in full before the date of maturity. -Amount Financed: $25,000 Regular Monthly Payment: $656.25 Total Number of Payments scheduled: 48 Loan repaid in full instead of making: 27th

Assume that the given mutual fund investment earns monthly returns that are reinvested and subsequently earn at the same rate. Find the beginning value of the investment, first monthly return, or effective annual rate of return as indicated. - Find the annual rate of return.

Solve the problem. -The cash price of a dehumidifier is $205. The customer paid $50 as a down payment. The remainder will be paid in 6 monthly installments of $26.86 each. Find the amount of the finance Charge.

The Art of Problem Solving

The Basic Concepts of Set Theory

Introduction to Logic

Numeration Systems

Number Theory

The Real Numbers and Their Representations

The Basic Concepts of Algebra

Graphs, Functions, and Systems of Equations and Inequalities

Geometry

Counting Methods

Probability

Statistics

Trigonometry Formerly

Graph Theory

Voting and Apportionment

Filters

Exam 13: Personal Financial Management

Solve the problem. -The following information on Company X appears in a stock table. Find the dividend for Company X.

Use the compound interest formula to compute the future value of the investment. -$5500 at 8% compounded monthly for 7 years

Solve the problem. -An item is purchased for $5200 with a down payment of $1000. There is a finance charge of $1100. Find the monthly payment if 36 payments are made.

On April 1, the unpaid balance in an account was $218. A payment of $30 was made on April 11. On April 21, a $40 purchase was made. The finance charge rate was 1.15% per month of the Average daily balance. Find the new balance at the end of April.

Find the compound interest earned by the deposit. Round to the nearest cent. - $4000\$ 4000$4000 at 1%1 \%1% compounded quarterly for 1121 \frac { 1 } { 2 }121​ year

Use the actuarial method to find the payoff amount for the loan paid in full before its due date. -Amount Financed: $26,000 Regular Monthly Payment: $820.73 Total Number of Payments scheduled: 36 Loan repaid in full instead of making: 18th payment

Solve the problem. -Bill makes a $167.33 per month payment for 3 years to pay off a $4000 loan. What was the add-on interest rate?

In order to purchase a home, a family borrows $86,000 to be paid back over a 25-year period in equal monthly payments. What percentage of the first monthly payment goes toward the principal If the annual interest rate is 8%? If the annual interest rate is 12%?

The following problem involves adjustable-rate mortgage. You will need a table of monthly payments. -Suppose your mortgage is $55,400 for 25 years. The index rate is 7.5% and the margin is 2.5%. Find the initial monthly payment.

Use the Rule of 78 to find the payoff amount for the loan paid in full before the date of maturity. -Finance charge: $5415 Total number of payments: 149 Amount per payment: $319 Remaining number of payments, when paid in full: 12

Solve the problem. Round to the nearest cent. -The unpaid balance in an account on December 1 was $174. A payment of $45 was made on December 18. The finance charge rate was 1.2% per month of the average daily balance. Find the Finance charge for the month of December.

How many monthly payments of $139.44 are necessary to pay off a $4000 loan if the add-on interest rate is 8.5%?

Find the total monthly payment, including taxes and insurance, on the following fixed-rate mortgage. Amount of loan: $76,000 Interest rate: 11% Term of loan: 20 years Annual taxes: $1404 Annual insurance: $337

A student has a total of $3000 in student loans that will be paid with a 48-month installment loan with monthly payments of $73.94. Determine the APR of the loan to the nearest one-half of a Percent.

Solve the problem. -The following information on Company X appears in a stock table. Find the 52-week low for Company X.

Find the compound interest earned by the deposit. Round to the nearest cent. -$4100 at 2.9% compounded semiannually for 5 years

Use the Rule of 78 to find the payoff amount for the loan paid in full before the date of maturity. -Amount Financed: $25,000 Regular Monthly Payment: $656.25 Total Number of Payments scheduled: 48 Loan repaid in full instead of making: 27th

Assume that the given mutual fund investment earns monthly returns that are reinvested and subsequently earn at the same rate. Find the beginning value of the investment, first monthly return, or effective annual rate of return as indicated. - Find the annual rate of return.

Solve the problem. -The cash price of a dehumidifier is $205. The customer paid $50 as a down payment. The remainder will be paid in 6 monthly installments of $26.86 each. Find the amount of the finance Charge.

The Art of Problem Solving

The Basic Concepts of Set Theory

Introduction to Logic

Numeration Systems

Number Theory

The Real Numbers and Their Representations

The Basic Concepts of Algebra

Graphs, Functions, and Systems of Equations and Inequalities

Geometry

Counting Methods

Probability

Statistics

Trigonometry Formerly

Graph Theory

Voting and Apportionment

Filters

Find the compound interest earned by the deposit. Round to the nearest cent. - $\$ 4000$ at $1 \%$ compounded quarterly for $1 \frac { 1 } { 2 }$ year