FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Personal Financial Management

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Solve the problem. -For the given stock investment, find the percentage return:

A) $70.8 \%$
B) $175.0 \%$
C) $75.0 \%$
D) $43.9 \%$

E) All of the above
F) A) and C)

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

On the December 8 billing date, Hakeem had a balance due of $532.70 on his credit card. The transactions during the following month were: December 10 Charge : football tickets $\$ 151.02$ December 12 Payment $\$ 107.36$ January $3 \quad$ Charge: restaurant meal $\$ 51.36$ The interest rate on the card is 1.4% per month. Using the average daily balance method, find the Balance due on January 8 (December has 31 days) .

A) $635.96
B) $635.68
C) $540.94
D) $635.55

E) None of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date. -Regular Monthly Payment: $304.84 APR: 12.7% Remaining Number of Scheduled Payments After Payoff: 31

Use the compound interest formula to compute the future value of the investment. -$1300 at 2% compounded quarterly for 6 years

Solve the problem. -Charlie cannot remember how much he financed to buy his car. He does remember that his monthly payment is $500. His add-on interest rate was 9% and he made a total of 36 payments. Find the amount of his loan to the nearest penny.

For the fixed-rate mortgage below, determine the portion of the total monthly payment which is income-tax deductible. Round your answer to the nearest dollar. $\begin{array} { l l } \text { Amount of mortgage: } & \$ 142,000 \\\text { Term of mortgage: } & 25 \text { years } \\\text { Interest rate: } & 7.0 \% \\\text { Annual property tax: } & \$ 1025 \\\text { Annual insurance: } & \$ 620 \\\text { Owner's income tax bracket: } & 30 \%\end{array}$

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

$2950 at 4% for 1 years

Use the actuarial method to find the payoff amount for the loan paid in full before its due date. -Regular Monthly Payment: $646.54 APR: 14.5% Remaining Payments After Payoff: 18

Use the Rule of 78 to find the payoff amount for the loan paid in full before the date of maturity. -Amount Financed: $12,000 Regular Monthly Payment: $373.33 Total Number of Payments scheduled: 36 Loan repaid in full instead of making: 30th

What is the monthly payment on a 15-year loan of $175,000 if the annual interest rate is 9.9%? Use the regular monthly payment formula or the table as appropriate.

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date. -Amount Financed: $12,000 Regular Monthly Payment: $269.98 Total Number of Payments scheduled: 60 Loan repaid in full instead of making: 36th payment

Find the compound interest earned by the deposit. Round to the nearest cent. -$3000 compounded continuously at 3.3% for 20 months. (Assume 608 days.) Round the answer to the nearest dollar.

A college student purchased a used car for $4000. He paid 15% down and then paid 18 monthly payments of $206.55. Determine the APR of the loan to the nearest one-half of a percent.

Use the actuarial method to find the payoff amount for the loan paid in full before its due date. -Amount Financed: $11,000 Regular Monthly Payment: $231.02 Total Number of Payments scheduled: 60 Loan repaid in full instead of making: 30th payment

A borrower uses an income tax refund to pay off the balance on a fixed installment loan. Which rules or methods can be used to compute the amount of interest he will save?

Solve the problem. -The following information on Company X appears in a stock table. Find the cost to purchase 250 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: $\begin{array} { l | l } \text { Principal Amount } & \text { Commission } \\\hline \text { Up to } \$ 2499.99 & \$ 35 + 1.7 \% \text { of principal } \\\$ 2500.00 - \$ 6249.99 & \$ 65 + 0.66 \% \text { of principal } \\\$ 6250.00 - \$ 19,999.99 & \$ 76 + 0.34 \% \text { of principal }\end{array}$

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%. After two years, the Treasury index increases to 8%. Using the adjusted balance of $73,595.52, find the New monthly payment.

Solve the problem. Round to the nearest cent. -On September 1, the unpaid balance in an account was $188. On September 3, a payment of $60 was made. The finance charge rate was 1.0% per month of the average daily balance. Find the Finance charge for the month of September.

Solve the problem using the rule of 78. -A fisherman buys a new boat for $50,000. He makes a down payment of $17,000 and finances the balance at 8.5% APR over 60 months. Before making the 50th payment, the fisherman decides to Pay the remaining balance on the loan. How much interest will the fisherman save?