The monthly mortgage payment on your house is 750

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Exam 2 Practice Problems

The monthly mortgage payment on your house is 750 Your mortgage lasts for 30 from EXAM 2 at Kansas State University

1 .   If you deposit $ 100 in one year , $ 200 in two years , and $ 300 in three years , earning 7 % , how much will you have in five years ?
A. $ 518.49
B. $ 628.49
C. $ 719.56
D. $ 769.93
2 .   Your friend currently has $ 7,000 in a savings account and plants to deposit $ 4,000 at the end of each year for three years into a savings account earning 8 % interest , how will your friend have in 4 years ?
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3 .   If you deposit $ 200 into a savings account in one year , and then another $ 400 into a savings account in three years , how much will be in the account after six years , when you can earn 8 % ?
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4 .   A quarterback is signed to a four - year , $ 30 million contract . The details of the contract provide for an immediate cash bonus of $ 2.5 million , $ 4 million after the first year , $ 6.5 million after the second year , and $ 9 million after the third year , and $ 8 million in the fourth year . Assuming a 12 percent discount rate , is this package worth $ 30 million ? If not , how much is the package actually worth ?
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5 .   Your financial planner found an opportunity for you to invest in a product that pays you $ 30,000 for six years after 30 years . How much would you be willing ot invest today if you desire an interest rate of 10 % ?
A. $ 1,084.71
B. $ 7,487.81
C. $ 7,715.61
D. $ 8,236.59
6 .   The monthly mortgage payment on your house is $ 750 . Your mortgage lasts for 30 years and has a 6 % APR compounded monthly . How much did you borrow ?
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7 .   If you took out a four year , 6 % APR loan for $ 24,000 , how much will your monthly payments be ?
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8 .   You ’re finally ready to buy your first house ! Assume the following when considering how much money the bank will loan you : - You have saved $ 25,000 - Your Annual Salary is $ 45,000 - Interest rate on the laon is 4 % per year for a 30 - year fixed rate loan - Closing Costs are 5 % of the loan value - Monthly mortgage payments will be equal to 28 % of your monthly income
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9 .   Continuing from the prior question , what is the TOTAL purchase price of the house ?
A. $ 219,934
B. $ 194,934
C. $ 244,934
D. $ 233,938
10 .   If you have $ 300,000 to deposit and can earn 5 % APR , how many months can you receive payments of $ 4,000 ?
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11 .   You are planning to retire in 30 years and are planning a 20 year retirement . Prior to retirement , you will save $ 1400 at the end of each year . If your investments can earn 10 % per year over the entire time , how much can you withdraw at the end of each year during retirement ?
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12 .   In the previous problem , if someone gives you $ 20,000 in 15 years and it earns 10 % as well , how much can you withdraw at the end of each year during retirement ?
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Mathematics: A Practical Odyssey
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Chapter 5 / Exercise 56
Mathematics: A Practical Odyssey
Johnson/Mowry
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6. The monthly mortgage payment on your house is $750. Your mortgage lasts for 30 years and has a 6% APR compounded monthly. How much did you borrow? A. $118,000 B. $119,754C. $120,433 D. $123,686 E. $125,094
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Mathematics: A Practical Odyssey
The document you are viewing contains questions related to this textbook.
Chapter 5 / Exercise 56
Mathematics: A Practical Odyssey
Johnson/Mowry
Expert Verified
7. If you took out a four year, 6% APR loan for $24,000, how much will your monthlypayments be?
8. You’re finally ready to buy your first house! Assume the following when considering how much money the bank will loan you:- You have saved $25,000- Your Annual Salary is $45,000- Interest rate on the laon is 4% per year for a 30-year fixed rate loan- Closing Costs are 5% of the loan value- Monthly mortgage payments will be equal to 28% of your monthly income
9. Continuing from the prior question, what is the TOTAL purchase price of the house?
10. If you have $300,000 to deposit and can earn 5% APR, how many monthscan you receive payments of $4,000?A. 65B. 72C. 90D. 98
11. You are planning to retire in 30 years and are planning a 20 year retirement. Prior to retirement, you will save $1400 at the end of each year. If your investments can earn 10% per year over the entire time, how much can you withdraw at the end of each year during retirement?

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