SOA #5b - " ) use Fc Questicn-13 {3 points)" Date...

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Unformatted text preview: " ) use Fc Questicn-13 {3 points)" Date or loan: 1'r1r2003. 'Payments: Level payments at the end cf each year. First-payment: 12:31:03. Payment pericd: 20 years. The principal pcrticn cf the 1 3‘“ payment is $54.40. The principal pcrticn'of the 13”" payment is $32.99. “’1 i. _.s ._.. '— W Y‘f-‘t‘fi‘ ‘5‘ 7° “‘1 c; RS. 5-!“ _- "" w x... —_. a; '7 ' "‘7 " .c ___ 11?] iii"- d5 _ t I (gran)? i__ w - i" 9'3 ‘fl Questicn 13 In what range is the tctal amount at interest paid an the loan? [A] Less than $625 ' $625 but less than $640 [[3] $6413 but less than $655 ff) [El] $655 but less than $6Tfl [E] $670 cr more *1- w I. . MCQ I Data for Question ] {3 points) Srnilh takes a loan rapa'yahle by equal installmants at Ifha and 5r each year for 2|) ycars. Both the principal and interest ponions of the 11th paymant an: 51m]. w Hi “ W FMLfl w_u*"'m: lmeiflF‘L-E? “Jamal: mar-4m = mam-+13qu Question | In what range is the initial atnuunt ul’tha loan? {A} Less than $1,500 (B) $1,501? but less than Slfl'flfl {C} $1,Tflfl_hul leas than “Still an ,atm but less than $2,]Dfl {E} 51,1 DD or more 3| Exam EA-l: Spring 211116 2 GO ON TO NEXT PAGE at. . , O ’ . Data for Question 23 (3 points} . . A loan is made on 1t1l‘2flD-tl. 'Lean repayments: 120 level manthlypayments of interest and prineipal with the first _ payment at 2“ meta. lnterest is charged an the lean-at a rate of it”) = 15%. - Amount of interest paid in the 54'“ payment of the lean = $1 DD. F =.F'rineipal outstanding on the lean after the t=ll2lEh payment.- H ________——1- E JEWEK" ' .I'l 1': Eli WT “ea "if—W Question 2: In what range is F'? - _ Less than $3,DD5 {a} seeds but less than sedan (C) $E,D2D but less than $3,035 {D} $B.D35 but less than $E.fl5El (E) EBJJEU or mere why-ems «l . ' as - - - '- . a Data For Que-etion 20 [5.poi-nte) I ' I _ . ' ' Deteotloan:1!132l2|l33. ' " Payments: Annual payments-oi $1,000 at the end of eaoh.year. 'Firel payment: 1331:2003. Payment period:_ 25 years; Loan interest rate: 3% compounded annually; X is the present yaIUe of interest payments at 1.-‘1!2EID3 over the life oi the loan, using an interest rate of 12% compounded annually. Question 20 l: 1 {- t ‘1" In what range is X? _ t . ,3: -.. t-ar . and "q [A] Less than $4,6oo - ._ 15 B $4.5oo but less than $5,5oo _ "’ [C] $5;ooo but less than $6,600 [o] $B.6Elfl butlesethan $7.5oo £33 '2- x [E] $?.BDD or more 0,; .' - Data For uestion 4 (3 points) - Smithobtains a $300,000. 30-year mortgage with level end of month payments. The interest rate is 29.5%. compounded annually. With the 120"1 payment, Smith makes an additional payment o1v$2.000 and immediater refinances the outstanding balance with a 20-year. 7.0% compounded annually, mortgage with level end of month payments-of P. "m é_ pm rHT_Fo eta r‘ EU 3- 3311 - 7;? H 1mm W1 ad; '3} ‘D " ' 1.45M ‘ . If drags-L? Mama [Ft/O '- akl 4-mem ' 24: es' . "” q D qtfi ¢ 1 t. M gqs<_ 1.“ '__I1 1 H‘fl ( ass ' |L'tuestion 4' In what range is P? [A] Less than $1,000 [31- $1,900 but less than $1,950 @ $1,950 but less than $2,000 [D] $2,000 but less than 152050 [E] $2,050 or more a j W Data foyflueation TI" {4 points] Details on a loan made on 1II1IEDD-4: Number of payments: 10. Amount of each payment: aaaoo. Date of first paymentzi 12:31l2flfl4. Interest rate: I 3% compounded annually. - tmmedlately alter the sixth payment, an additional $1fl,flfl[t payment is made. The loan is reamortized over a longer term to proyide for annual payments of $1,Elfl[t and a final smaller payment of X paid one year alter the Iaat$11flflfl payment. 35 fl (gem? cl (-3 A _toffi§qm? é __ 3 aagaxr- i _ a —- “l "' ' r—” '._ t. ___ halt L773M ME In what range is X? (A) Leaa than $350 {B} $35G but less than $45!?! I {C} 54513 but leaa than $550 {D} $551] but less than $853 ' ® $55!] or more “MW GM Question 3 57¢ Data tor Question 3 (3 points) Terms of a $1,0EID loan issued by Smith: Length of loan: 20 years. Payments: Leyel annual payments at the end of each year. Interest; 5% nominal. convertible semi-annually. When 'Smith receives each payment, it is immediately reinvested at 5%. oompounded annually. - Ft is the effective annual rate of interest eamed by Smith on his combined investments over the 2D year period. I 31 1-. is WEI FF.” we 2_ 11‘ l 4'- 3” l? t in; m — F — '10 -— tmj me d5 —- *— xre— 4m 2 45 —-- — K 3!. I in what range is Ft? ‘5 ‘ 3 ct (A) Less than 5.5% out {E} 5.57% but less man 5.52% to} 5.52% but less than 5.57% to} 5.57% out lees than 5.72% {E} 532% or more Data fer Duestien 1|] '[4 points} car Date of lean: 1l'1l2l3ll15. 2|] annual payments beginning 12l31i'2DD5. The payment is X in the first 1E]I years, and 55% of X in the sedend 1|] years. ' . Terms 01 lean repayment: Interest rate: 5%, edmpdunded annually. ’1’ is the ratle el‘ prineipel repaid in the Hi111 payment to principal repaid In the 11"1 HI—q. . ITIIE I11. 531..— uesien a d t 1n W umfiq? a In what range is Y? r': “’T m. 32's t "fr- F {A} Less than 2.4:: I“ S. ass/«ED 7’ 1E! .53. Elfin-Tl . E 2.45 but less than 2.45 .45 but less than 2.52 f" {D} 2.52 but less than 2.55 [E] 2.55 or more We? Gtrl - O ’3» a ' ‘ é Data For Question 3 [4 points) ' - . I. Date of loan: 1l'1i‘2003. Amount of loan: $10,000. Term of loan: 30 years. Interest rate: 7.5% compounded annually. Payments: Annual payments with the first payment at 125302003; each subsequent payment is 3% larger than the immediately preoeding payment. X = the total interest paid through the 20"” payment. [olefin T. Farri- Elfirf ) 1.? "'LT—jfir?‘ _ viii-am . 3“- V-l - C *4 .PWT "LE ___.ME’ I a '— F L ’” is r = mini-W .- ~ tb _ so Watts _ a ' ‘F -53“ ilk/O v" K'Bt- it a H, . (E61145 (renew-lb -‘ MAJQJFE '. : thsjflf Question 3 __ ' 3*“ i 'l £51 3 a w 1 t. trig-‘3 {St in what range is )1? '7. h” 5'“: A“) .55. “L i ' ; Km 3 o [A] Less than $14,750 W @A r ,— , 65M” 3 ' [B] $14,?50 but less than $15,250 @ $15,250 but less than $153le fax [D] $15,?50 but less than $15250 J, [E] $15,250 ormore -’) “0% Data for l{Juestlcg B {3 points} Amount of loan: $1U,flflfl. ‘ Term of lean: 20 years. lntereslrate on loan: 5% per annum, efieclive. Terms cf loan repayment: 2i) annual payments beginning at the end at year1 - consisting of sscc principal plus interest on me outstanding balance at the lean. mm in what range is the total amcunt cf interest and principal paid over the term at the loan? A Less than $15.1)Dfl @ $15,001? but less than $15,4dd [C] $15,4DD butless lhan $151BDD (c) s1s_scc but less than $15,200 {E} $15,2flfl or more 3 ww— aw 0Q _ @- 096 Data for Question 5 [4 paints} [in lilflflflfi, Smith burrows a sum of money repayahle in annual payments at the end cf each year fer it] years. Each annual payment contains principal and interest. The principal in the payment at the end or year t equals Fulfil]! (For! =1, 2,3,...,2fl}. The payment at the end cf‘the year also includes the interest accrued during the year. _ Interest rate: 613%, cernpnunded annually. X = the present value at 1.! lilflflfi of interest payments made during the It} years cf the I lean. Question 5 1 .3" m 9the. 11}! a In what range is X? (:1) Less than 39,0013 {B} $9,DDD but less than $1 {tfiflfl {C} S |tl,tl|J|J but less than $1 Lil-[ID SI Ltlflfl but less than Ellflfl-fl (E) $11,t]t]t] er rncre Elam Eat-1: Spring Zflflt‘i - ON TO NEXT PAGE Q) 3 ’3 Data Fo[ Question 12 {3 points] A ten-year loan of $10,000 at an 0% annual effective rate can be repaid using any of the four following methods: - L Amortization method. with level annual payments'at the end of each year. ' - ' ll. Repay the principal at the end of tenyears vvhile paying 0% annual effective interest on the loan at the end of each year. The principal is repaid by making equal annual deposits at the end of each year into a sinking fund earning interest at 0%.annual effective so that the _ sinking fund accumulates to $10,000 at the end of the 10“1 year. W —— Ill. . Same as ll, except the sinking fund earns 0% annual effective. if . ’0 1V. Same es ll, except the sinking fund earns'12% annual effective. r-x J ' ' 11'<Iifl<l Question 12 Rank the annual payment amounts of each method. [A] l'fi II ‘- ill "1 W [B] l|¢|=ll|'~'-IVI 10]" Is IV: m 1: ll fl [o1'lvle'zIn-zn J @The correct ansvver is not given by [A]. [E], [C]. or [D]Ial:rove a). {9%'. II_ -p .. 6 Data for uestio 1T {4 points} Loan tenns: $1fld_tlt]fl borrowed on 1l1l2D04. issued at aifitm‘lt. annual effective interest rate. . - . Loan repayment Ho repayments ol principal or interest are made on the loan until a sinking fund has accumulated to pay the balance in full. This occurs at12r'31f2fl19. . g . ' : 'tfibimfiwsjmt "U Erie—IRRE'W Sinking fund: $1 o,ooo annual deposits from 12c1r2oo4 through 12l31i'2fl11 65m ' and $_5,DDEI annual depcslls beginning on 1331IED127Tfie _ ' 95 Elm“ sinking fund accumulation rate Is i‘lt. until 12e1r2o11 and lt'it': therealter. ' During calendar year 2E1 1. interest accrued on the loan and interest earned on the sinking fund are the 'ss—rrTeT - F m till-want = ramslsST-“WUWG LJJ'W‘J~ Ekmfl“ 1L lUJITIJ ‘1"er 7' joqr'hflu £11.31“ l t .uk ' 5 , o~duH: -- .1 a . __ I.“ . . ll T t}: Question 1? Q G D {waist-5}" LEE“? LEE‘L In what range is will? _ 7B As - Less than stars (3} . 6.1 [1% but less than E.Efl% (e) asoas but less than v.1 as {D} 110% but less than Tfilll‘lt. {E} 130% or more @flflcékct f l o’é Data For Question 13 (3 points} Date of loan: 1l'1r'2003. Payments: Leyel payments at the end of each year. First payment: 12i31l’03. Payment period: 20 years. The principal portion of the 13lh payment is $54.40. The principal portion-of the 1Elh payment is $70.09. an a. E“ y low“? E V 5i 5* .3. w rte-4r: ‘5 Wei I; ‘5' W1 _ M t" q —- ‘1 7-‘3' 7 I *1 it? it“ ‘5 l _ 42 {60> .. w —- fi' 9‘!- r i. 600 ' ' W W : QM L“ K“ 9’0 A 2:. (9/1. L Question 13 In what range is the total amount of interest paid on the loan? [A] Less than $625 sszs but less than saw [0] $540 but less than $655 [D] $655 but less than $570 [E] $6701] or more 0A 2 (26 Data for Question E [3 points} Smith takes a lean repayahle by equal installments at the end eFeaeh year Far 20' years. Both the principal and interest partiens arthe i lth payment are $lflfl. w W ‘1' m flmu‘ffl m_h¢m: itEUXfi-t-CJ wilds {a Sim *— ts-wtwllq-s L W * "° 1—- iflCtrFu-h :(iflh‘w v1 Larva-L “3 sh! Ct) cit" 2' E to am} __ «4 {W7 9‘ '1’”. Question 1 In what. range is the initial ameunt ei‘Lhe loan? [A] Less than $1,500 {B} 51,5130 but less than SiJflfl Elflflfl but less than $1,900 (C) 513% but less than same {E} 362,1 Eli} er rnere Exam EAL-1: Spring IBM» 1 GO ON TU NEXT PAGE ...
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SOA #5b - " ) use Fc Questicn-13 {3 points)" Date...

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