Exam 13: Personal Financial Management

Solve the problem. Assume that simple interest is being calculated in each case. Round the answer to the nearest cent unless otherwise indicated. -Andy Jones opened a security service company. To pay for startup costs, Andy Jones borrowed $40,000 from a bank at 5% for 1 year. Find the interest.

Jerry's Bank charges 1.2% per month on the average daily balance as well as the following special fees. Cash advance fee: 2.5% {minimum of $2 and maximum of $10} Late payment fee: $30 Over the credit limit fee: $35 One month Jerry was on vacation and did not get his account payment in on time and also went Over the credit limit. He also used his card for 7 $150 cash advances. His average daily balance was $3200 for the month. Find the special fees which will be added to his account balance next month.

Solve the problem. -An item is purchased for $2500 with a down payment of $500. There is a finance charge of $150. Find the monthly payment if 20 payments are made.

Harry's Carpet company is offering a special promotion. Interest charges are added to the balance each month, becoming part of the balance for the next month. If you pay off the original purchase Within 3 months, all interest charges are cancelled. Suppose your original purchase is $3000 and the Monthly interest rate is 1.1%. If you pay off the account one day late, what is the total interest paid, Ignoring the last day's interest?

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date. -Regular Monthly Payment: $455.78 APR: 12% Remaining Number of Scheduled Payments After Payoff: 36

$\$ 800$ at $7.2 \%$ for $\frac { 1 } { 12 }$ year

Find the total return earned by the given bond. -

Use the actuarial method to find the payoff amount for the loan paid in full before its due date. -Regular Monthly Payment: $231.78 APR: 10% Remaining Payments After Payoff: 6

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. - Number of Monthly Beginning Shares Percentage NAV Purchased Return \ 8.02 246 1.76\% Find the first monthly return.

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 basic cost (ignoring any broker's fees)to purchase 130 shares of Company X at the day's closing price.

Solve the problem. -For the given stock investment, find the total purchase price:

The given information applies to the day of investment in a mutual fund. Find the net asset value or number of shares purchased as indicated. - Amount Invested Total Fund Assets Total Fund Liabilities Total Shares Outstanding \ 2200 \ 2.22 billion \ 261 million 159 million Find the number of shares purchased.

The following problem involves adjustable-rate mortgage. You will need a table of monthly payments. -Harry has a 1-year ARM for $75,000 over a 25-year term. The margin is 2%, and the index rate starts out at 8.5% and increases to 10% at the first adjustment. The balance of principal at the end of The first year is $74,113.56. Find the amount of monthly payment for the first month of the second Year.

Find the present value for the given future amount. Round to the nearest cent. -A = $4900, 8 years r = 8% compounded quarterly

For the given investment, assume that there is no opportunity for reinvestment of returns. Find the monthly return, annual return, or annual percentage return as indicated. - Amount Monthly Percentage Invested Return \ 2840 2.2\% Find the annual percentage return.

Use the actuarial method to find the payoff amount for the loan paid in full before its due date. -Regular Monthly Payment: $417.31 APR: 12% Remaining Payments After Payoff: 36

Use the Rule of 78 to find the payoff amount for the loan paid in full before the date of maturity. -Finance charge: $23,156 Total number of payments: 281 Amount per payment: $256 Remaining number of payments, when paid in full: 6

When the Scott Pearson Company's stock increased in value from $100.00 per share to $125.00 per share, the company reported to its shareholders that their stocks had increased in value by 25%. The stock price remained fixed at $125 for a few months, but then it fell back down to $100.00 per share. At that time, the Scott Pearson Company reported to the shareholders that the stock had decreased by 20%. Since the price increase and decrease are exactly the same, should not the percent increase and the percent decrease be equal? Explain.

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: $193,000 Term of mortgage: 10 years Interest rate: 9%