1 Assume you wish to borrow $500,000 to buy a house with a 30 year loan. Assume you will make yearly payments and the loan has an interest rate of 4.4%. What will be the yearly payment amount?

2

Which will have a larger final (maturity date) payment, a bullet loan or an Amortized loan? Assume both have the same amount being borrowed, with the same maturity date and interest rate on the loan.

		Not enough information to determine the answer
		Bullet loan
		Amortized loan
		Both will have the same payment

3 What is the yearly interest payment on an interest only loan if the loan is 22 years long and has a 7% interest rate on a prinicple of 3,000? (Please use at least 5 decimal places and do not use $ symbol in the answer)

4 If you have borrowed 318 dollars using a pure discount loan for 5 years, where you must pay 5% in interest per year, how much must you payback in 5 years? (Please use at least 5 decimal places and do not use $ symbol in the answer)