1. A few years ago, Simon Powell purchased a home for $110,000. Today, the home is worth $150,000. His remaining mortgage balance is $50,000. Assuming that Simon can borrow up to 80 percent of the market value, what is the maximum amount he can borrow?

2. Louise McIntyres monthly gross income is $2,000. Her employer withholds $400 in federal, state, and local income taxes and $160 in Social Security taxes per month. Louise contributes $80 per month for her IRA. Her monthly credit payments for VISA and MasterCard are $35 and $30, respectively. Her monthly payment on an automobile loan is $285. What is Louises debt payments-to-income ratio? Is Louise living within her means? (LO5.3)

Louises Gross Income = $2,000

Less: Income taxes = -400

Less: Social Security Tax = -160

Less: IRA contribution = -80

Net take-home pay = $1,360

3. An online buying club offers a membership for $300, for which you will receive a 10 percent discount on all brand-name items you purchase. How much would you have to buy to cover the cost of the membership?

4. Calculate the unit price of each of the following items:

(a)Motor oil2.5 quarts for $1.95 (cents/quart)

(b) Cereal15 ounces for $2.17 (cents/ounce)

(c) Canned fruit13 ounces for 89 cents (cents/ounce)

(d) Facial tissue300 tissues for $2.25 (cents/100 tissues)

5. A service contract for a video projection system costs $70 a year. You expect to use the system for five years. Instead of buying the service contract, what would be the future value of these annual amounts after five years if you earn 3 percent on your savings?