Question 1

$900 at 3% for 1 year

Accepted Answer

A) $27 
B) $270 
C) $3.00 
D) $2.70 
A) $27 
B) $270 
C) $3.00 
D) $2.70

Question 2

Find the total monthly payment, including taxes and insurance, on the following fixed-rate mortgage.
Amount of loan: $409,000
Interest rate: 12%
Term of loan: 30 years
Annual taxes: $4356
Annual insurance: $1030

Accepted Answer

A) $4604.27 
B) $4690.16 
C) $4207.03 
D) $4655.86 
A) $4604.27 
B) $4690.16 
C) $4207.03 
D) $4655.86

Question 3

Use the actuarial method to find the payoff amount for the loan paid in full before its due date.
-Regular Monthly Payment: $329.42 APR: 10.2%
Remaining Payments After Payoff: 20

Accepted Answer

A) $6278.42 
B) $6364.74 
C) $6394.04 
D) $6308.06 
A) $6278.42 
B) $6364.74 
C) $6394.04 
D) $6308.06

Question 4

Solve the problem.
-The cash price of a electric typewriter is $270. The customer agreed to pay 25% of the price as a down payment. The remainder, plus a finance charge, will be paid in 12 monthly installments of $
24.56 each. Find the amount of the finance charge.

Accepted Answer

A) $294.72 
B) $269.33 
C) $24.97 
D) $92.22 
A) $294.72 
B) $269.33 
C) $24.97 
D) $92.22

Question 5

Solve the problem. Round to the nearest cent.
-The unpaid balance in an account on November 1 was $124. A payment of $50 was made on November 12. The finance charge rate was 1.2% per month of the average daily balance. Find the
Finance charge for the month of November.

Accepted Answer

A) $1.13 
B) $0.89 
C) $2.38 
D) $1.11 
A) $1.13 
B) $0.89 
C) $2.38 
D) $1.11

Question 6

Find the APR (true annual interest rate), to the nearest half percent, for the following.
-Amount financed: $3600 Monthly payment: $166.95
Number of payments: 24

Accepted Answer

A) 14% 
B) 9.5% 
C) 10.5% 
D) 12% 
A) 14% 
B) 9.5% 
C) 10.5% 
D) 12%

Question 7

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

Accepted Answer

A) $28.62 
B) $28.91 
C) $37.47 
D) $32.05 
A) $28.62 
B) $28.91 
C) $37.47 
D) $32.05

Question 8

Solve the problem. If necessary, refer to the table below.  
-In order to purchase a home, a family borrows $65,000 at an annual interest rate of 11%, to be paid back over a 30-year period in equal monthly payments. How much interest will they pay over the
30-year period? Round to the nearest dollar.

Accepted Answer

A) $157,844 
B) $215,694 
C) $445,867 
D) $222,844 
A) $157,844 
B) $215,694 
C) $445,867 
D) $222,844

Question 9

Use the compound interest formula to compute the future value of the investment.
-$1100 at 1% compounded monthly for 12 months

Accepted Answer

A) $1100.92 
B) $1239.51 
C) $1111.05 
D) $1111.00 
A) $1100.92 
B) $1239.51 
C) $1111.05 
D) $1111.00

Question 10

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.
-$$\begin{array} { c l c } 
\hline & \text { Number of } & \text { Monthly } \
\text { Beginning } & \text { Shares } & \text { Percentage } \
\text { NAV } & \text { Purchased } & \text { Return } \
\hline \$ 11.00 & 332 & 2.77 \% \
\hline
\end{array}$$ Find the annual rate of return.

Accepted Answer

A) 38.8% 
B) 36.9% 
C) 33.2% 
D) 1213.92% 
A) 38.8% 
B) 36.9% 
C) 33.2% 
D) 1213.92%

Question 11

Find the effective annual interest rate for the given nominal annual interest rate. Round your answers to the nearest
0.01%.
-3.9% compounded every minute (assume 365 days per year)

Accepted Answer

A) 3.98% 
B) 103.98% 
C) 3.97% 
D) 4.03% 
A) 3.98% 
B) 103.98% 
C) 3.97% 
D) 4.03%

Question 12

Solve the problem.
-The following information on Company X appears in a stock table.   Find the amount received by the seller of 3080 shares of Company X at the day's closing price. Deduct sales expenses which consist of the broker's commission and SEC fee. Assume that the
Transaction is automated and that the discount broker's commissions are as follows: $$\begin{array} { l | l } 
\text { Number of Shares } & \text { Commission } \
\hline \text { Up to } 1000 & \$ 29.95 \
\text { More than } 1000 & 3 \text { cents per share }
\end{array}$$

Accepted Answer

A) $101,329.00 
B) $101,394.45 
C) $101,332.00 
D) $101,328.95 
A) $101,329.00 
B) $101,394.45 
C) $101,332.00 
D) $101,328.95

Question 13

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%. After three years, the Treasury index decreases to 6.5%. Using the adjusted balance of $53,896.88, find the
New monthly payment.

Accepted Answer

A) $415.50 
B) $503.42 
C) $469.54 
D) None of the above is correct. 
A) $415.50 
B) $503.42 
C) $469.54 
D) None of the above is correct.

Question 14

$800 at 8% for 8 years

Accepted Answer

A) $800.00 
B) $512.00 
C) $51.20 
D) $12.50 
A) $800.00 
B) $512.00 
C) $51.20 
D) $12.50

Question 15

Solve the problem. Use the Annual Percentage Rate Table if necessary.
-Find the APR to the nearest half percent, for the following data.

Accepted Answer

A)  $12.0 \%$ 
B)  $13.0 \%$ 
C)  $14.0 \%$ 
D)  $12.5 \%$ 
A)  $12.0 \%$ 
B)  $13.0 \%$ 
C)  $14.0 \%$ 
D)  $12.5 \%$

Question 16

Find the APR (true annual interest rate), to the nearest half percent, for the following loan.
-Amount Financed $= \$ 2300$
Finance Charge $= \$ 260$
Number of Monthly Payments $= 24$

Accepted Answer

A)  $11 \%$ 
B)  $10.5 \%$ 
C)  $11.5 \%$ 
D)  $10 \%$ 
A)  $11 \%$ 
B)  $10.5 \%$ 
C)  $11.5 \%$ 
D)  $10 \%$

Question 17

Solve the problem. Use the Annual Percentage Rate Table if necessary.
-Find the APR to the nearest half percent, for the following data.

Accepted Answer

A) $10.5 \%$ 
B) $11.0 \%$ 
C) $12.0 \%$ 
D)  $11.5 \%$ 
A) $10.5 \%$ 
B) $11.0 \%$ 
C) $12.0 \%$ 
D)  $11.5 \%$

Question 18

Find the total return earned by the given bond.
-

Accepted Answer

A)  $\$ 975$ 
B)  $\$ 487,500$ 
C)  $\$ 97,500$ 
D)  $\$ 4875$ 
A)  $\$ 975$ 
B)  $\$ 487,500$ 
C)  $\$ 97,500$ 
D)  $\$ 4875$

Question 19

The following problem involves adjustable-rate mortgage. You will need a table of monthly payments.
-Suppose your mortgage is $75,000 for 20 years. The index rate is 6.5% and the margin is 2.5%. Find the initial monthly payment.

Accepted Answer

A) $674.79 
B) $487.50 
C) $675.00 
D) None of the above is correct. 
A) $674.79 
B) $487.50 
C) $675.00 
D) None of the above is correct.

Question 20

For what type of computation are the actuarial method and the rule of 78s used? Which
technique requires the use of an APR table?

Accepted Answer

The actuarial method and the rule of 78s

$900 at 3% for 1 year

Find the total monthly payment, including taxes and insurance, on the following fixed-rate mortgage. Amount of loan: $409,000 Interest rate: 12% Term of loan: 30 years Annual taxes: $4356 Annual insurance: $1030

Use the actuarial method to find the payoff amount for the loan paid in full before its due date. -Regular Monthly Payment: $329.42 APR: 10.2% Remaining Payments After Payoff: 20

Solve the problem. -The cash price of a electric typewriter is $270. The customer agreed to pay 25% of the price as a down payment. The remainder, plus a finance charge, will be paid in 12 monthly installments of $ 24.56 each. Find the amount of the finance charge.

Solve the problem. Round to the nearest cent. -The unpaid balance in an account on November 1 was $124. A payment of $50 was made on November 12. The finance charge rate was 1.2% per month of the average daily balance. Find the Finance charge for the month of November.

Find the APR (true annual interest rate), to the nearest half percent, for the following. -Amount financed: $3600 Monthly payment: $166.95 Number of payments: 24

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

Solve the problem. If necessary, refer to the table below. -In order to purchase a home, a family borrows $65,000 at an annual interest rate of 11%, to be paid back over a 30-year period in equal monthly payments. How much interest will they pay over the 30-year period? Round to the nearest dollar.

Use the compound interest formula to compute the future value of the investment. -$1100 at 1% compounded monthly for 12 months

Find the effective annual interest rate for the given nominal annual interest rate. Round your answers to the nearest 0.01%. -3.9% compounded every minute (assume 365 days per year)

$800 at 8% for 8 years

Solve the problem. Use the Annual Percentage Rate Table if necessary. -Find the APR to the nearest half percent, for the following data.

Find the APR (true annual interest rate), to the nearest half percent, for the following loan. -Amount Financed $= \$ 2300$ Finance Charge $= \$ 260$ Number of Monthly Payments $= 24$

Solve the problem. Use the Annual Percentage Rate Table if necessary. -Find the APR to the nearest half percent, for the following data.

Find the total return earned by the given bond. -

The following problem involves adjustable-rate mortgage. You will need a table of monthly payments. -Suppose your mortgage is $75,000 for 20 years. The index rate is 6.5% and the margin is 2.5%. Find the initial monthly payment.

For what type of computation are the actuarial method and the rule of 78s used? Which technique requires the use of an APR table?

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

$900 at 3% for 1 year

Find the total monthly payment, including taxes and insurance, on the following fixed-rate mortgage. Amount of loan: $409,000 Interest rate: 12% Term of loan: 30 years Annual taxes: $4356 Annual insurance: $1030

Use the actuarial method to find the payoff amount for the loan paid in full before its due date. -Regular Monthly Payment: $329.42 APR: 10.2% Remaining Payments After Payoff: 20

Solve the problem. -The cash price of a electric typewriter is $270. The customer agreed to pay 25% of the price as a down payment. The remainder, plus a finance charge, will be paid in 12 monthly installments of $ 24.56 each. Find the amount of the finance charge.

Solve the problem. Round to the nearest cent. -The unpaid balance in an account on November 1 was $124. A payment of $50 was made on November 12. The finance charge rate was 1.2% per month of the average daily balance. Find the Finance charge for the month of November.

Find the APR (true annual interest rate), to the nearest half percent, for the following. -Amount financed: $3600 Monthly payment: $166.95 Number of payments: 24

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

Solve the problem. If necessary, refer to the table below. -In order to purchase a home, a family borrows $65,000 at an annual interest rate of 11%, to be paid back over a 30-year period in equal monthly payments. How much interest will they pay over the 30-year period? Round to the nearest dollar.

Use the compound interest formula to compute the future value of the investment. -$1100 at 1% compounded monthly for 12 months

Find the effective annual interest rate for the given nominal annual interest rate. Round your answers to the nearest 0.01%. -3.9% compounded every minute (assume 365 days per year)

$800 at 8% for 8 years

Solve the problem. Use the Annual Percentage Rate Table if necessary. -Find the APR to the nearest half percent, for the following data.

Find the APR (true annual interest rate), to the nearest half percent, for the following loan. -Amount Financed =$2300= \$ 2300=$2300 Finance Charge =$260= \$ 260=$260 Number of Monthly Payments =24= 24=24

Solve the problem. Use the Annual Percentage Rate Table if necessary. -Find the APR to the nearest half percent, for the following data.

Find the total return earned by the given bond. -

The following problem involves adjustable-rate mortgage. You will need a table of monthly payments. -Suppose your mortgage is $75,000 for 20 years. The index rate is 6.5% and the margin is 2.5%. Find the initial monthly payment.

For what type of computation are the actuarial method and the rule of 78s used? Which technique requires the use of an APR table?

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 APR (true annual interest rate), to the nearest half percent, for the following loan. -Amount Financed $= \$ 2300$ Finance Charge $= \$ 260$ Number of Monthly Payments $= 24$