Math Money Management
Test chapter 9
Name ________________________________
Please do your own work.
I.
Use the payment chart shown for the following (where needed!!)
1)
Mike and
Song Yee offered $87,000 on a house that had been priced at $96,500 , and the seller accepted the offer.
A 20% down payment is required.
a) What is the amount of the down payment? ______
b)
What is the amount
of the mortgage loan needed to
finance the
purchase?
_________
2)
Sam and Robin
are interested
in purchasing a home that sells for $123,000.
If they obtain a loan for this amount
at 11% for 25
years, answer the following:
a)
What is their monthly payment?
_______
b)
How much do they pay back over the life of the loan? _______
c)
Of the total amount paid back, how much is interest?
___________.
3)
How much can be saved in total interest by financing $60,000 at 13% for 20 years rather than
25 years?
(Show how you calculate your answer!!) 
(Hint:
calculate total payments for both time periods, then find the
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
This is the end of the preview.
Sign up
to
access the rest of the document.
 Summer '06
 VariousProfessorsListed

Click to edit the document details