Question 1

Question 1
1. Beverly Frost bought a home for $190,000 with a down payment of $19,000 at 7% for 25 years. Since then the rate has risen to 9%. How much more would her monthly payment be if she bought the house at 9%?

a.
$143.00

b.
$208.97

c.
$436.40

d.
None of these

e.
$227.43
1 points
Question 2
1. The total cost of interest is equal to the total of all monthly payments:

a.
Divided by amount of mortgage

b.
Minus amount of mortgage

c.
Times amount of mortgage

d.
Plus amount of mortgage

e.
None of these
1 points
Question 3
1. On March 12, Bill Jones accepted a $12,000 note in granting a time extension of a bill for goods purchased by Ron Prentice. Terms of the note were 13% for 90 days. On April 24, Bill could no longer wait for the money and discounted the note at Able Bank at a discount rate of 14%. The proceeds to Bill is:

a.
None of these

b.
$12,390.00

c.
$12,047.90

d.
$12,163.54

e.
$12,048.90
1 points
Question 4
1. Marsha Terban bought a home for $119,000 with a down payment of $19,000. Her rate of interest is 12 1/2% for 35 years. The balance of the mortgage at the end of the first month is:

a.
None of these

b.
$99,669.76

c.
$99,985.67

d.
$3.33

e.
$98,944
1 points
Question 5
1. A simple discount note results in:

a.
Interest deducted when note is paid back

b.
None of these

c.
Interest deducted in advance

d.
Lower interest costs than a simple interest note

e.
Same interest costs as a simple interest note
1 points
Question 6
1. Tiffany purchased a $10,000, 13-week Treasury bill that is paying 2.25%. What is the effective rate on this T-bill?

a.
2.7%

b.
2.0%

c.
2.26%

d.
2.2%

e.
None of these
1 points
Question 7
1. Amanda Chin purchased a home for $296,000; she put 20% down with a mortgage rate of 6% for 30 years. What is Amanda's monthly payment?

a.
$1,240.80

b.
$1,402

c.
$1,420.80

d.
None of these

e.
$1,776
1 points
Question 8
1. An amortization schedule shows:

a.
Increase in loan outstanding

b.
The