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SOA 5b blank set

SOA 5b blank set - 03 Data Fer Questipn 13{3 paints IDate...

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Unformatted text preview: 03 Data Fer Questipn 13 {3 paints] IDate of lean: 1i’1i’2553. Payments: Leyei payments at the end of each year. First payment: 1331553. Payment peried: 25 years. The principal portion at the 13”“ payment is $54.40. The principal portion of the 13'“ payment is same. Question 13 In what range is the tetal amount at interest paid en the lean? [A1 Less than $525 [B] $525 but less than $540 [C] $545 but less than $555 [D] 5555 but less than ssrp [E] $5?5 or mere Data for Questinni {3 paints) Smith takes a loan repayaiale by equal installments at the and Dfeach year For Ell years. Earth the principal and inlsrest portions Of the | lth payment an: Slflfl. Question I In what range is the initial anmunl ot‘llie lnan? {A} Less than 31,501: {E} iii .50!) but less than $1,?Ufl {C} S LTDU but less than $130!] {D} 31.9% but less than $2,]llfl {E} 52.] [it] or more Exam EA-‘l: Spring lflllfi GO ON TD NEXT PAGE /- b Data for Question 2? {3 points} é A loan is made on 1r1r2oo4. Loan repayments: 12G leyel monthly payments of interest and principal with the first payment at EMIEDDII. Interest is oharged on the loan at a rate prim} = 15%. Amount of interest paid in the 541" payment of the loan = $100. F' = Prinoipat outstanding on the loan after the ad" payment. Question 2? In what range is P“? {A} Less than $3,0D5 {E} $31005 but less than $3320 {C} $3.t]2tt out less than $B,D35 {D} $3335 but less then $31050 {E} $B.D50 or more Wyafll rm fox 03 610 Data For Question 20 (5 points) Date of loan: 'll‘ll2003. Payments: Annual payments of $1 ,000 at the end of eaoh year. First payment: 12251;“2003. Payment period: 25 years. Loan interest rate: 5%, compounded annually. X is the present yalue of interest payments at 1l1l2003 oyer the life of the loan, using an interest rale of 12% compounded annually. flueslion 20 in what range is X? [A] Less than $4,500 [El] $4,500 but less than $5,500 [C] $5,500 but less than $5,500 [[11 $5,500 but less than $1500 [E] $?,500 or more 810 Smith obtains a $300,000, 30-year mortgage with level and of month payments. The interest rate is 15%, compounded annually. With the 120m payment, Smith makes an additional payment of $2,000 and immediately refinanoes the outstanding balanoe with a 20—year, 10% compounded annually. mortgage with level and of month payments of P. 0% Data For uestion 4 (3 points) W In what range is P? [A] Less than $1,900 [El] $1 ,900 but less than $1 ,950 [C] $1,050 but less than $2,000 [D] $2,000 but less than $2,050 [E] $2,050 or more Data for Question T [4 points) Details on a loan made on 1f1l'2004: Number of payments: 10. Amount oleaoh payment: $5,000. Date of first payment: 12502004. lntereet rate: 0% compounded annually. Immediately after the sixth payment. an additional $10,000 payment is made. The loan is reamortized oyer a longer term to proyide for annual payments of $1,000 and a final amaller payment of): paid one year after the last 51,000 payment. Question T" In what range is X? {A} Less than 5350 {El} $350 but less than $450 (C) $450 but less than $550 {DJ 5550 but less than $550 {E} $550 or more “MW GM Data fer Duestien 3 t3 paints} Terms eta $1.000 lean issued by Smith: ' Length of lean: 20 years. Payments: Level annual payments at the end of each year. Interest: 5% neminal, senverlihle semi—annually. 1v'tlhen Smith receives each payment, it is immediately reinvested at 5%. compounded annually. R is the effective annual rate of interest earned by Smith en his combined investments ever the 20 year peried. Clueslien 3 in what range is Fl? {#0 Less than 5.53% {5} 5.5?55 but less than 5.52% {C} 5.52% but less than 5.5?95 {0} 5.5?03 but less than 502% {E} 512% er mere Data for Question 10:4 paints} ' Data of lean: ‘lt'it'20t2i5. Terms at lean repayment: 20 annual payments beginning 12i31l2flfl5. The payment is X in the first it) years, and 50% at X in the second it} years. interest rate: 5%, compounded annually. Y is the ratie pt principal repaid in the 15‘“ payment ta prineipal repaid in the 11‘“ payment. Ctuestien 10 In what range is Y? {Pt} Less than 2.40 [Bi 2.40 but less than 2.45 {C} 2.4-5 but less than 2.52 {D} 2.52 but less than 2.58 {E} 2.53 or mere Data For Question 3 (4 points} Date aflean'. 1i1i20fl3. Ameunt df lean: $1D.UUU. Term df lean: 30 years. Interest rate: 15% edmpdunded annually. IPayments: Annual payments with the first payment at 12f31f2l303; each subsequent payment is 3% larger than the immediately preceding payment. I = the total interest paid through the 2G"1 payment. QUestien 3 In what range is X“? [A] Less than $14.?5D [B] $14,?50 but less than $15,250 [C] $15,25D but less than $15.?5i} [D] $15,750 but less than $15,250 [E] $16,250 or mere 253» Data fer Questing Q {3 peints) Ameunt el lean: $1 ecce. Term eflean: 2E1 years. Interest rate en lean: 5% per annum, effective. Terms er lean repayment: 20 annual payments beginning atthe end ef year 1 censisting ef $5DD principal plus interest en the eutstancling balance ef the lean. Questien El In what range is the tetal ameunt ef interest and principal paid ever the term ef the lean? {A} Less than $15.0EID {B} $15.DDD but less than $15.4ee [Ci 515.400 but less than $15.3tilt] {D} $15,6flt] but less than 516.2% {E} 516.2% er mere Wipe Elect ”r J41 3“» Data For Question 5 [4 points) ("in li’ll’llfltlti= Smith borrows a sum of money repay-able in annual payments at the and ot‘ each year for 20 years. Each annual payment contains principal and interest. The principal in the payment at the end oF year t equals Slflflt (forr=l,2._3=...._2fl}. The payment at the end ot‘the year also includes the interest accrued during the year. Interest rate: 5.0%, compounded annually. X = the present value at lflfll'lliti of interest payments made during the 10 years of the loan. Question 5 In what range is X? {at Less than $9,0tltl {E} filmflflt} but less than S] [Little {C} $1 li,tit'lfl but less than till ljflflfl {D} $l lJlei'Ifl but less than $12,0{lfl {E} 3 l Ejfltlfl or more ”"N. Exam Baal: Spring 2006 6 Gt} ON TO NEXT PAGE h e3 f} Data For Question 12 {3 points) A ten-year loan of $1U,UDD at an 8% annual effectiye rate can be repaid using any of the four following methods: I. Amortization method with leyel annual payments at the end of each yeah ll. Repay the principal at the end of ten years while paying 3% annual effectiye 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 6% annual effecliye so that the sinking fund accumulates to $1D.Dflfl at the end of the “10‘“ year. lll. Same as ll, except the sinking fund earns 8% annual effectiye. IV. Same as ll, except the sinking fund earns 12% annual effectiye. Question 12 Rank the annual payment amounts of each method. [A] i-~'~'ll~~1lllsl‘yr [El] ||~~1|=lllslyr [c] lsIVslllsll [D] lvslslllsll [E] The correct answer is not giyen by [A], E], [C], or [D] aboye ' r" I Data fcr Quesiicn 1? (4 points] Lcan terms: $100,000 pcrrcwed cn 1i1i2004, issued at a 5.00% annual effecfiye interest rate. Lcan repayment: Nc repayments cf principal cr interest are made an the lean until a sinking fund has accumulated tc pay the balance in full. This cccurs at 12f31!2010. Sinking fund: $10000 annual depcsits frcrn 1331i2004 thrcugh 1240101011 and $5,000 annual depcsits beginning cn 13302012. The sinking fund accumulaticn rate is i% until 13302011 and W: thereafter. Dunng calendar year $1011r interest accrued an the lean and interest earned en the sinking fund are the same. Question 1? In what range is kits“? {A} Less than 0.10% {E} 0.10% but less than 0.00% (C) 5.50% but less than 110% (D) 110% but less than 100% (El 100% or mere .f"\ ‘I I 900‘s étwl ...
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