Quiz 7 Mortgages

Question 1

If I put $3,500 in the bank every year for 10 years, at 4.0% interest, how much will I have at the end?

Answer 1

43702.23. [g] [BEG] 10n, 4i, 3,500 CHS PMT FV Answer is $43,702.23

Question 2

What is the monthly payment on a $750,000 mortgage at 4.5% interest for a 30 year term?

Answer 2

3800.14. 30 gn, 4.5 gi, 750,000 CHS PV, PMT Answer is $3,800.14.

Question 3

If I put $9,000 in the bank every year for six years, at 4.5% interest, how much will I have at the end?

Answer 3

63172.37. [g] [BEG] 6n, 4.5i, 9,000 CHS PMT FV Answer is $63,172.37

Question 4

A $264,000 mortgage has monthly payments for 20 years, at 5.95% interest. How much are the monthly payments?

Answer 4

$1,883.77

Question 5

If a 25-year mortgage, with an interest rate of 6.8%, has monthly payments of $1,179.92, what was the original mortgage amount?

Answer 5

170000. 25 gn, 6.8 gi, 1,179.92 CHS PMT, PV Answer is $170,000.

Question 6

In the compound interest tables, which columns provide future values as outputs?

Answer 6

1, 2, 3

Question 7

If I put $5,000 in the bank every year for 15 years, at 3.0% interest – how much will I have at the end?

Answer 7

95784.41. [g] [BEG] 15n, 3i, 5,000 CHS PMT, FV Answer is $95,784.41.

Question 8

A property has a first mortgage of $130,000, a second mortgage of $30,000, and a third mortgage of $15,000. It is foreclosed and sold for $165,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives $ _________.

Answer 8

$5,000, $30,000

Question 9

“Conversion of benefits received in the future to present value” is the definition of

Answer 9

discounting

Question 10

A homeowners association needs to build up $50,000 to replace the roofs in eight years. They can expect 3.75% interest. How much will be needed if they make quarterly payments?

Answer 10

$1,334.57

Question 11

What’s the value today of the right to receive $38,000 in nine years, discounted at 6%?

Answer 11

22492.14. 9n, 6i, 38,000 CHS FV, PV Answer is $22,492.14.

Question 12

Compounding and discounting are ___________.

Answer 12

opposites

Question 13

A 20 yr mortgage, with an interest rate of 6.15%, has monthly payments of $1,305.20. What was the original mortgage amount?

Answer 13

180000. 20 gn, 6.15 gi, 1,305.20 CHS PMT, PV Answer is $180,000.

Question 14

A $264,000 mortgage has monthly payments for 30 years, at 5.95% interest. How much are the monthly payments?

Answer 14

1574.34. 30 gn, 5.95 gi, 264,000 PV, CHS PMT Answer is $1,574.34.

Question 15

A property has a first mortgage of $150,000, a second mortgage of $25,000, and a third mortgage of $10,000. It is foreclosed and sold for $170,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives $ _________.

Answer 15

0, $20,000

Question 16

A $313,000 mortgage has monthly payments for 25 years, at 5.95% interest. How much are the monthly payments?

Answer 16

2007.11. 25 gn, 5.95 gi, 313,000 PV, CHS PMT Answer is $2,007.11.

Question 17

A $222,500 mortgage, with 6.75% interest, has a monthly payment of $1,691.81. How many years was the original term of the loan?

Answer 17

20

Question 18

A homeowner’s association needs to build up $60,000 to replace the roofs in 5 years. They can expect 3.75% interest. How much is needed each payment if they made annual payments?

Answer 18

10730.71. [g] [BEG] 5n, 3.75i, 60,000 CHS FV, PMT Answer is $10,730.71.

Question 19

A property has a first mortgage of $180,000, a second mortgage of $40,000, and a third mortgage of $25,000. It is foreclosed and sold for $220,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives $ _________.

Answer 19

0, $40,000

Question 20

An apartment owner needs to build up $30,000 to replace the boilers in seven years. He can expect 4.0% interest. How much is needed if he makes semi-annual payments?

Answer 20

1841.23. [g] [BEG] 7 ENTER 2 X n, 4 ENTER 2 ÷ I, 30,000 CHS PMT Answer is $1,841.23.

Question 21

A property has a first mortgage of $170,000, a second mortgage of $20,000, and a third mortgage of $10,000. It is foreclosed and sold for $195,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives $ _________.

Answer 21

$5,000, $20,000

Question 22

How much do I have to put aside each year, at 6% interest, to accumulate $18,000 to replace a boiler in 6 years?

Answer 22

2434.46. [g] [BEG] 6n, 6i, 18,000 CHS FV Answer is $2,434.46

Question 23

A $112,000 mortgage, with 5.4% interest, has a monthly payment of $694.62. How many years was the original term of the loan?

Answer 23

24. 5.4 gi, 112,000 PV, 694.62 CHS PMT, n 12 ÷ Answer is 24 years.

Question 24

A $92,000 mortgage, with 7.2% interest, has a monthly payment of $695.32. How many years was the original term of the loan?

Answer 24

22. 7.2 gi, 92,000 PV, 695.32 CHS PMT, n, 12 ÷ Answer is 22 years.

Question 25

_____________ liens are liens placed on a property after a previous lien has been made and recorded. 

Answer 25

Junior

Question 26

Which is a guaranteed loan? 

Answer 26

VA

Question 27

“A document or a clause in a document in which the borrower accepts responsibility for the repayment of a debt” is the definition of 

Answer 27

mortgage note

Question 28

If I put $15,000 in the bank at 3.15% interest for 11 years – how much will I have?

Answer 28

21098.56. 11n, 3.15i, 15,000 CHS PV, FV Answer is $21,098.56.

Question 29

A $265,000 mortgage has monthly payments for 30 years, at 5.75% interest. How much are the monthly payments?

Answer 29

1546.47. 30 gn, 5.75 gi, 265,000 CHS PV, PMT Answer is $1,546.47

Question 30

A $112,000 mortgage, with 6.4% interest, has a monthly payment of $727.09. How many years was the original term of the loan?

Answer 30

27. 6.4 gi, 112,000 PV, 727.09 CHS PMT, n 12 ÷ Answer is 27 years.

Question 31

If I put $40,000 in the bank at 3.15% interest for 11 years – how much will I have?

Answer 31

56262.83. 11n, 3.15i, 40,000 CHS PV, FV Answer is $56,262,83.

Question 32

Which is an insured loan? 

Answer 32

FHA

Question 33

If I put $22,000 in the bank at 2.75% interest for nine years – how much will I have?

Answer 33

28084.01. 9n, 2.75i, 22,000 CHS PV, FV Answer is 28,084.01

Question 34

An apartment owner needs to build up $30,000 to replace the boilers in seven years. He can expect 4.0% interest. How much is needed if he makes semi-annual payments?

Answer 34

1841.23. [g] [BEG] 7 ENTER 2 X n, 4 ENTER 2 ÷ I, 30,000 CHS PMT Answer is $1,841.23.

Question 35

How much do I have to put aside each year, at 4% interest, to accumulate $15,000 to replace a boiler in 10 years?

Answer 35

1201.31. [g] [BEG] 10n, 4i, 15,000 CHS FV, PV Answer is $1,201.31.

Question 36

How much should I pay today for a contract that will give me $250,000 in five years, discounted at 8%?

Answer 36

170145.8. 5n, 8i, 250,000 CHS FV, PV Answer is $170,145.80

Question 37

A $102,500 mortgage has monthly payments for 25 years, at 6.25% interest. How much are the monthly payments?

Answer 37

676.16. 25 gn, 6.25 gi, 102,500 CHS PV, PMT Answer is $676.16.

Question 38

How much do I have to put aside each year, at 6% interest, to accumulate $14,000 to replace a boiler in nine years?

Answer 38

1149.35. [g] [BEG] 9n, 6i, 14,000 FV, PMT Answer is $1,149.35

Question 39

If I invest $75,000 at 5.2% interest today, how much will be available when I retire in 11 years?

Answer 39

130988.87. 11n, 5.2i, 75,000 CHS PV FV Answer is $130,988.87

Question 40

What are the monthly payments on a $950,000 mortgage at 4.8% interest for 15 years?

Answer 40

7413.94. 15 gn, 4.8 gi, 950,000 PV, CHS PMT Answer is $7,413.94.

Question 41

A $265,000 mortgage has monthly payments for 30 years, at 5.75% interest. How much are the monthly payments?

Answer 41

1546.47. 30 gn, 5.75 gi, 265,000 CHS PV, PMT Answer is $1,546.47

Question 42

If a 30-year mortgage, with an interest rate of 5.9%, has monthly payments of $1,156.62; what was the original mortgage amount?

Answer 42

195000. 30 gn, 5.9 gi, 1,156.72 CHS PMT, PV Answer is $195,000.

Question 43

How much do I have to put aside each year, at 4.5% interest, to accumulate $25,000 to repave a parking lot in seven years?

Answer 43

$2,983.29