Question
1. In order for Maria to attend college, she needs school loans as her father lost his factory job five years ago and her mother
1.
In order for Maria to attend college, she needs school loans as her father lost his factory job five years ago and her mother died when she was young. Which of the following loans would Maria or her father potentially qualify for?
I Perkins loans
II Subsidized Stafford loans III Unsubsidized Stafford loans IV PLUS loans
| A. I and II only
| |
| B. III and IV only
| |
| C. I and III only | |
| D. I, II, III, and IV |
2.
Which of the following ways of financing a childs college education is available to taxpayers in high income brackets?
| A. PLUS Loans | |
| B. Tax-exempt Series EE savings bonds | |
| C. Federal Perkins Loans | |
| D. Lifetime Learning Credit |
3.
You purchased a home 10 years ago for $185,000. You chose a 30-year fixed rate mortgage with an interest rate of 6.2%. You would now like to refinance the loan with a 15-year fixed rate mortgage with a rate of 4.3%. Closing costs will be 3% of the remaining loan balance and will be amortized over the 15-year mortgage. What will be your new payment?
| A. $770 | |||||||||||
| B. $1,133 | |||||||||||
| C. $1,175 | |||||||||||
| D. $1,210
4 Your client has won the mega-bucks lottery. She has the choice of taking $25 million today or receiving annuity payments of $1.5 million for 30 years beginning today. She considers 6.5% her opportunity cost. All things being equal, she should:
|
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