SUBMIT AS FOLLOWED:EX:1. A 2. B
mathematics_100__4.txt
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Q1. Starting with $4,500.00, what will it grow to in 5 years at 7.25% compounded daily.
a. $6,385.95
b. $6,465.89
c. $6,358.59
d. $6,835.59
e. $9,444.50
Q2. Your company needs to have $40,465.00 five years from now. If the interest rate at your bank is 6% compounded quarterly, how much will you need to deposit into your account today in order to have the desired amount in 5 years?
a. $29,999.26
b. $29,666.92
c. $30,044.05
d. $30,000.00
e. $20,044.05
Q3. The compound interest on a $3,000.00 loan at 7% for 3 years compounded annually is:
a. $3,675.13
b. $630.00
c. $3,630.00
d. $675.13
e. none of the above
Q4. Sunfresh Markets made a $13,000.00 investment in a compound interest account paying 8% compounded monthly. What was the value of its investment at the end of 8 months? (Choose the closest answer)
a. 12710.00
b. 13710.00
c. 13860.00
d. 14710.00
e. 24062.00
Q5. How much should be invested today to provide $1,800.00 in one year? Assume 10% interest compounded annually.
a. $1,636.36
b. $1,782.00
c. $1,620.00
d. $493.15
e. $1,647.42
Q6. In a loan of 8% compounded quarterly, what is the periodic interest rate?
a. 4%
b. 6%
c. 2.5%
d. 2%
Q7. If you borrow $1000 at an APR of 12% and pay it back in one year making the same payment amount each month, what principal (P) and interest (I) have you paid when the load is paid off?
a. P=$1200, I=$120
b. P=$1000, I=$120
c. P=$1000, I=$66.19
d. P=$1200, I=$65.50
e. P=$1000, I=$60.00
Q8. If interest is compounded, the total amount at the end of the loan or investment term is called the:
a. future value
b. compound amount
c. present value
d. both A and B
e. none of the above
Q9. $15,000.00 for 10 years compounded at 10% quarterly results in how many periods?
a. 20
b. 10
c. 120
d. 40
e. none of the above
Q10. A __________ __________ is used to accumulate a required amount of money by the end of a certain period of time to pay off a financial obligation.
a. sinking fund
b. compound interest
c. present value
d. checking account
e. none of the above
Q11. An annuity without a specific number of payment periods is termed a(n):
a. non-standard annuity
b. annual annuity
c. contingent annuity
d. annuity certain
Q12. The sum of the payments of an annuity plus the interest is called the:
a. economic sum
b. payoff amount
c. financial total
d. amount of the annuity
Q13. The amount of interest on an ordinary annuity of $11,600.00 for 5 years at 8% compounded semiannually is:
a. $23,269.60
b. $116,000.00
c. $23,296.60
d. $139,269.60
Q14. __________ __________ is an annuity with payments made at the beginning of each period.
a. Annuity certain
b. Ordinary annuity
c. Contingent annuity
d. Annuity due
e. None of the above
Q15. An annuity with specific number of payment periods is referred to as a(n):
a. contingent annuity
b. annuity certain
c. annual annuity
d. guaranteed annuity
Q16. __________ is the amount of a $3,000.00 annuity due at 12% compounded semiannually for 3 years.
a. $41,814.50
b. $43,068.93
c. $22,180.50
d. $334,321.00
e. none of the above
Q17. The amount of an ordinary $7,500.00 annuity for 3 years at 12% compounded quarterly is:
a. $106,440.00
b. $23,182.50
c. $180,997.50
d. $25,305.00
Q18. Brian bought a new ranch style home for $180,000.00. Brian made a 30 percent down payment. Assuming a rate of 6.5% on a 30 year mortgage, Brian’s monthly payment is:
a. $1,783.80
b. $1,982.00
c. $594.60
d. $796.32
Q19. All payments on a mortgage are required to be paid on a __________ basis.
a. semiannually
b. biweekly
c. monthly
d. weekly
e. agreed
Q20. The difference between the monthly payments on a $95,000.00 mortgage at 5% versus 6% for 25 years is:
a. $65.05
b. $56.05
c. $56.50
d. $56.60
Q21. Jayne purchased a home for $240,000.00 with a down payment of $48,000.00. The rate of interest was 5-3/4 for 30 years. What was her monthly mortgage payment?
a. $962.70
b. $2,146.85
c. $1,121.28
d. $1,850.46
e. $1000.00
Q22. Points represent:
a. monthly payments
b. a 3 percent up front payment
c. an additional cost of financing
d. 2 percent of the amount borrowed
Q23. The primary mortgage on a home is called the:
a. collateral
b. real mortgage
c. first mortgage
d. FNMA
Q24. Land or anything permanently attached to the land is termed:
a. real property
b. FNMA
c. collateral
d. personal property
Q25. A variable rate mortgage means:
a. payments will be larger than on a fixed rate mortgage
b. the interest rate cannot change
c. the interest rate is fixed for the first five years
d. the interest rate can change
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