UMT UMT Home Logout MATH 100 Exam 4 25 Unanswered Please be sure to save at least every 15 minutes! Submit Please be sure to save at least once every 15 minutes. If you leave this page without saving, or if your session times out, any answers you have not saved will be lost. The Submit for Grading button will become available once you've answered all questions. Exams are not timed; you do not have to finish an exam in one sitting as long as you have saved your answers. Q1. Starting with $4,500.00, what will it grow to in 5 years at 7.25% compounded daily. a. $6,385.95 b. $6,465.89 c. $6,358.59 d. $6,835.59 e. $9,444.50 Q2. Your company needs to have $40,465.00 five years from now. If the interest rate at your bank is 6% compounded quarterly, how much will you need to deposit into your account today in order to have the desired amount in 5 years? a. $29,999.26 b. $29,666.92 c. $30,044.05 d. $30,000.00 e. $20,044.05 Q3. If interest is compounded, the total amount at the end of the loan or investment term is called the: a. future value b. compound amount c. present value d. both A and B e. none of the above Q4. $15,000.00 for 10 years compounded at 10% quarterly results in how many periods? a. 20 b. 10 c. 120 d. 40 e. none of the above Q5. In a loan of 8% compounded quarterly, what is the periodic interest rate? a. 4% b. 6% c. 2.5% d. 2% Q6. Sunfresh Markets made a $13,000.00 investment in a compound interest account paying 8% compounded monthly. What was the value of its investment at the end of 8 months? (Choose the closest answer) a. 12710.00 b. 13710.00 c. 13860.00 d. 14710.00 e. 24062.00 Q7. How much should be invested today to provide $1,800.00 in one year? Assume 10% interest compounded annually. a. $1,636.36 b. $1,782.00 c. $1,620.00 d. $493.15 e. $1,647.42 Q8. If you borrow $1000 at an APR of 12% and pay it back in one year making the same payment amount each month, what principal (P) and interest (I) have you paid when the load is paid off? a. P=$1200, I=$120 b. P=$1000, I=$120 c. P=$1000, I=$66.19 d. P=$1200, I=$65.50 e. P=$1000, I=$60.00 Q9. The effective rate is: a. the stated rate b. the true semiannual rate c. the annual percentage yield rate d. the nominal rate e. the beginning rate Q10. __________ is the amount of a $3,000.00 annuity due at 12% compounded semiannually for 3 years. a. $41,814.50 b. $43,068.93 c. $22,180.50 d. $334,321.00 e. none of the above Q11. The amount of an ordinary $7,500.00 annuity for 3 years at 12% compounded quarterly is: a. $106,440.00 b. $23,182.50 c. $180,997.50 d. $25,305.00 Q12. An annuity with specific number of payment periods is referred to as a(n): a. contingent annuity b. annuity certain c. annual annuity d. guaranteed annuity Q13. What is the value of an annuity due at the end of 15 years of quarterly deposits of $2,000.00 with terms of 8% compounded quarterly? a. $228,102.00 b. $232,665.14 c. $232,666.08 d. $228,120.00 Q14. Payments into a sinking fund are always made when? a. when the funds are available b. at the end of each period c. lump sum at the beginning of the sinking fund d. at the beginning of each period e. none of the above Q15. Which of the following is not an example of the use of a sinking fund? a. pay an installment loan b. pay for equipment replacement c. pay for a new factory d. retire bonds e. none of the above Q16. A(n) __________ __________ is an annuity with payments made at the end of each period. a. annuity certain b. term annuity c. annuity due d. annual annuity e. none of the above Q17. A __________ __________ is used to accumulate a required amount of money by the end of a certain period of time to pay off a financial obligation. a. sinking fund b. compound interest c. present value d. checking account e. none of the above Q18. Land or anything permanently attached to the land is termed: a. real property b. FNMA c. collateral d. personal property Q19. Jayne purchased a home for $240,000.00 with a down payment of $48,000.00. The rate of interest was 5-3/4 for 30 years. What was her monthly mortgage payment? a. $962.70 b. $2,146.85 c. $1,121.28 d. $1,850.46 e. $1000.00 Q20. The primary mortgage on a home is called the: a. collateral b. real mortgage c. first mortgage d. FNMA Q21. A variable rate mortgage means: a. payments will be larger than on a fixed rate mortgage b. the interest rate cannot change c. the interest rate is fixed for the first five years d. the interest rate can change Q22. The difference between the monthly payments on a $95,000.00 mortgage at 5% versus 6% for 25 years is: a. $65.05 b. $56.05 c. $56.50 d. $56.60 Q23. All payments on a mortgage are required to be paid on a __________ basis. a. semiannually b. biweekly c. monthly d. weekly e. agreed Q24. Brian bought a new ranch style home for $180,000.00. Brian made a 30 percent down payment. Assuming a rate of 6.5% on a 30 year mortgage, Brian's monthly payment is: a. $1,783.80 b. $1,982.00 c. $594.60 d. $796.32 Q25. Points represent: a. monthly payments b. a 3 percent up front payment c. an additional cost of financing d. 2 percent of the amount borrowed