1. Larry purchased ahouse 10 years ago. The house cost $450.000 and the bank financed the loan at 4% interest for 30 years with monthly payments. Larry wants to sell the house. How much does he still owe on the house?

   		$320,000
   		$330,891.93
   		$354,528.01
   		$376,489.62

2. A(n) ______ is a requirement in the bond indenture that the firm will pay off a portion of the bond issue each year.

   		annuity fund
   		sinking fund
   		pay off clause
   		redemption clause

3. Property and casualty insurance have large amounts of funds invested in money markets because _____.

   		money markets have higher returns than capital markets.
   		timing of payouts on policies is known with reasonable accuracy.
   		it is difficult to predict the natural disasters that cause large payouts on policies.
   		insurance companies don't really need to make money on their premiums.

4. Ben bought a house for $500,000. The bank will make a mortgage loan with 10% down, 30 years at 3% annual interest rate with monthly payments. What will be Ben's monthly payment?

   		$1,250.00
   		$1,388.89
   		$1,894.22
   		$2,108.02