limited time test
Question 1 [6 points) Jason deposits $40,000 into an annuity that eams 8% interest compounded annually and which generales payents at the end of each half year for 4 years. Answer the following questions For full marks your answer should be rounded to the nearest cent a) How much is the semi-annual payment? Payment =$ 0.00 b) How much of the 7th payment comes from the annuity's principal? Principal = $ 0.00 c) How much of the payments in the third year will come from the annuity's principal Interest = $ 0.00 Question 2 [6 points] South Co takes out a $14.000 loan that charges 6 25% interest compounded annually has fixed quarterly payments of $550. Answer the following questions For full marks your answer should be rounded to the nearest cent a) How long will it take to pay off the loan? Your answer should be rounded to the appropriate whole penod 0 years, 0 months b) What is the principal component of the 17th payment? Principal - $ 0.00 c) What is the total interest paid for payments 23 through 267 Interest - $ 0.00 Question 3 [5 points) Wynn invests $140,000 in an annuity that earns 3.50% interest compounded annually. It makes monthly payments over 20 years. Answer the following questions For full marks your answer should be rounded to the nearest cent a) How much is the final payment? Final Payment = $ 0.00 b) How much is the principal reduced in the final year of the annuity? Final Year Principal = $ 0.00 c) How much interest is earned the final year of the annuity Final Year Interest - $ 0.00 Question 4 [8 points] Jason recently inherited S212,000 and used it to purchase an annuity that will pay him $3,000 every month The annuity earns 12% interest compounded monthly Answer the following questions For full marks your answer should be rounded to the nearest cent a) How long will the annuity last? Your answer should be rounded to the appropriate whole period 0 years, 0 months b) What is the amount of the final payment? Final Payment = $ 0.00 c) What is the principal component of the final 7 payments? Principal - $ 0.00 d) What is the interest component of the final 7 payments Interest - $ 0.00 Question 5 [10 points) A $26,000 loan that charges 7 25% interest compounded semi-annually is repaid by annual payments over 5 years Complete the following amortization schedule For full marks your answer should be rounded to the nearest cent Payment Payment Amount Interest Portion Principal Portion Principal Balance Remaining Number (S) (PMT) (S) (INT) ($) (PRN) (S) (BAL) Start 0.00 0.00 0.00 0.00 0.00 2 0.00 0.00 0.00 0.00 3 0.00 0.00 0.00 0.00 4 0.00 0.00 0.00 0.00 5 0.00 0.00 0.00 0.00 Total 0.00 0.00 0.00 Question 6 [5 points] Bruce takes out a $234,406 mortgage at 3 50% interest compounded semi-annually with a 30-year amortization What are the biweekly payments? For full marks your answer should be rounded to the nearest cent Payment -$ 0.00 Question 7 [8 points] Five years ago Adrian and Wynn purchased a home and got a 5465 950 mortgage with a 5-year term and 25 year amortation at 575% interest compounded semi-annually with monthly payments. They are renewing their mortgage on the same amortization timeline for a four-year term at 4 75% Interest compounded semi-annually and weekly payments For full marks your answer should be rounded to the nearest cent a) What is the balance remaining after the first term? Balance =$ 0.00 b) How much total interest was paid during the first term? Interest - $ 0.00 c) How much total principal was paid down during the first Principal = $ 0.00 d) How much are the new payments for the second torm? Payment = $ 0.00 e) What is the balance remaining after the second torm? Balance $ 0.00 Question 1 [6 points) Jason deposits $40,000 into an annuity that eams 8% interest compounded annually and which generales payents at the end of each half year for 4 years. Answer the following questions For full marks your answer should be rounded to the nearest cent a) How much is the semi-annual payment? Payment =$ 0.00 b) How much of the 7th payment comes from the annuity's principal? Principal = $ 0.00 c) How much of the payments in the third year will come from the annuity's principal Interest = $ 0.00 Question 2 [6 points] South Co takes out a $14.000 loan that charges 6 25% interest compounded annually has fixed quarterly payments of $550. Answer the following questions For full marks your answer should be rounded to the nearest cent a) How long will it take to pay off the loan? Your answer should be rounded to the appropriate whole penod 0 years, 0 months b) What is the principal component of the 17th payment? Principal - $ 0.00 c) What is the total interest paid for payments 23 through 267 Interest - $ 0.00 Question 3 [5 points) Wynn invests $140,000 in an annuity that earns 3.50% interest compounded annually. It makes monthly payments over 20 years. Answer the following questions For full marks your answer should be rounded to the nearest cent a) How much is the final payment? Final Payment = $ 0.00 b) How much is the principal reduced in the final year of the annuity? Final Year Principal = $ 0.00 c) How much interest is earned the final year of the annuity Final Year Interest - $ 0.00 Question 4 [8 points] Jason recently inherited S212,000 and used it to purchase an annuity that will pay him $3,000 every month The annuity earns 12% interest compounded monthly Answer the following questions For full marks your answer should be rounded to the nearest cent a) How long will the annuity last? Your answer should be rounded to the appropriate whole period 0 years, 0 months b) What is the amount of the final payment? Final Payment = $ 0.00 c) What is the principal component of the final 7 payments? Principal - $ 0.00 d) What is the interest component of the final 7 payments Interest - $ 0.00 Question 5 [10 points) A $26,000 loan that charges 7 25% interest compounded semi-annually is repaid by annual payments over 5 years Complete the following amortization schedule For full marks your answer should be rounded to the nearest cent Payment Payment Amount Interest Portion Principal Portion Principal Balance Remaining Number (S) (PMT) (S) (INT) ($) (PRN) (S) (BAL) Start 0.00 0.00 0.00 0.00 0.00 2 0.00 0.00 0.00 0.00 3 0.00 0.00 0.00 0.00 4 0.00 0.00 0.00 0.00 5 0.00 0.00 0.00 0.00 Total 0.00 0.00 0.00 Question 6 [5 points] Bruce takes out a $234,406 mortgage at 3 50% interest compounded semi-annually with a 30-year amortization What are the biweekly payments? For full marks your answer should be rounded to the nearest cent Payment -$ 0.00 Question 7 [8 points] Five years ago Adrian and Wynn purchased a home and got a 5465 950 mortgage with a 5-year term and 25 year amortation at 575% interest compounded semi-annually with monthly payments. They are renewing their mortgage on the same amortization timeline for a four-year term at 4 75% Interest compounded semi-annually and weekly payments For full marks your answer should be rounded to the nearest cent a) What is the balance remaining after the first term? Balance =$ 0.00 b) How much total interest was paid during the first term? Interest - $ 0.00 c) How much total principal was paid down during the first Principal = $ 0.00 d) How much are the new payments for the second torm? Payment = $ 0.00 e) What is the balance remaining after the second torm? Balance $ 0.00
