28) You apply for a mortgage loan on a $120,000 condo using 80% loan-to-value. Going interest rates are 4.00%, but after thoroughly surfing the net, you find a lender to grant you a loan at 3.25%. and jump on it. Its a 30-year loan paid monthly. How much interest would you save during the first 10 years of the loan now that youve found the lower interest rate?

29) You have really gone above and beyond in spending on your fraternity initiation party and ran up $1,500 on your parents credit card. You apologize to them and promise to pay $30 per month towards paying off the balance fully. You know that the credit card interest rate is 20%. How long will it take you to fully pay off your good times?

a. About 2 years

b. About 5 and a half years

c. About 9 years

d. It depends

30) You have the choice of three different investment alternatives. Which one has the highest FV ?

a. $125 per month invested for 10 yrs at 7%

b. $150 per month invested for 10 yrs at 5.50%

c. $175 per month invested for 10 yrs at 1.05%

31) Your plan is to buy a home with a 75% loan to value mortgage. The price youve negotiated is $134,000 and interest rates for 30 year loans (paid monthly) are 2.98%. What is your monthly payment and how much interest will you pay over the life of the loan?

a. $476 and $52,224

b. $360 and $43,938

c. $521 and $61,234

d. $423 and $ 51,646