Finance Consumer math EXPERTS ONLY

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timer Asked: Mar 19th, 2015

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2015 Consumer Math 2015.docx


 

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Short Answer (worth 2 points each) 1. Your charge account statement shows an unpaid balance of $4,285.24. The monthly finance charge is 2.09 percent of the unpaid balance. What is the finance charge? 2. Don Smith had a previous balance at the local Hardware store of $239.85. He had payments and credits of $59.22. The finance charge is 1.25 percent of the unpaid balance. He also had $100.98 in new purchases. What is the new balance? 3. Use the following chart to find the average daily balance (new purchases included). Dates 1/1–1/9 1/10 1/11–1/19 1/20 1/21–1/31 Payment Purchase $28.78 $250.00 End-ofDay Balance $475.82 x Number of Days x x x x x Total Sum of Balances 9 1 9 1 11 31 4. Your charge account statement showed a previous balance of $8,987.53, a finance charge of $86.92, new purchases of $99.99, and a payment of $1,525.00. What is your new balance? 5. Your bank granted you a single-payment loan of $11,850.00. You agreed to repay the loan in 150 days at an exact interest rate of 5.15 percent. What is the maturity value of the loan? 6. You purchased a microwave and dishwasher for $1,253.00. You made a 20 percent down payment and financed the remainder. What amount did you finance? 7. You purchased a plasma TV with an installment loan that has an APR of 17 percent. The TV sells for $4,523.00. The store financing required a 5 percent down payment and 36 monthly payments. What was the finance charge? Use the chart below to answer this question. MONTHLY PAYMENT ON A $100.00 LOAN Term in Months 6 12 18 24 30 36 42 48 54 Annual Percentage Rate 15.00% 16.00% 17.00% 18.00% $17.40 $17.45 $17.50 $17.55 $9.03 $9.07 $9.12 $9.17 $6.24 $6.29 $6.33 $6.38 $4.85 $4.90 $4.94 $4.99 $4.02 $4.07 $4.11 $4.16 $3.47 $3.52 $3.57 $3.62 $3.07 $3.12 $3.18 $3.23 $2.78 $2.83 $2.89 $2.94 $2.56 $2.61 $2.66 $2.72 8. You obtained a simple interest loan at 9 percent interest for 18 months. Your previous balance was $1,436.00. What is the final payment if the loan is paid off with the next payment? 9. Your neighbor obtained a simple interest loan at 8.75 percent for 24 months. Her previous balance was $985.28. What is the amount of interest for the next payment? 10. Your friend obtained a personal loan of $8,500.00 at 12.5 percent for 30 months. The monthly payment is $331.37. The balance of the loan after 9 months is $6,221.26. What is the new principal after the tenth payment? 11. Steve Crawford obtained an 18-month loan for $2,500.00 to pay for a new roof. The bank’s finance charge is $206.85. What is the APR? Use the chart below to answer this question. APR Term 10.00 % 10.25 % 6 12 18 24 $2.94 $5.50 $8.10 $10.7 5 $3.01 $5.64 $8.31 $11.0 2 10.50 10.75 11.00 11.25 11.50 11.75 12.00 % % % % % % % Finance Charge per $100.00 of Amount Financed $3.08 $3.16 $3.23 $3.31 $3.38 $3.45 $3.53 $5.78 $5.92 $6.06 $6.20 $6.34 $6.48 $6.62 $8.52 $8.73 $8.93 $9.14 $9.35 $9.56 $9.77 $11.3 $11.5 $11.8 $12.1 $12.4 $12.7 $12.9 0 8 6 4 2 0 8 12.25 % $3.60 $6.76 $9.98 $13.26 12. Sue Jones sees a convertible for sale at a local car lot. The base price is $18,526.00. The total for factory-installed options is $2,897.00. The destination charge is $250.00. What is the sticker price? 13. Car dealer Brad Bowman pays 85 percent of a car’s base price of $28,560.00, 95 percent of the options price of $5,490.00, plus a destination charge of $425.00. What is the dealer’s cost for the car? 14. While on the Internet, you find that the base price of a new car your family would like to purchase is $32,587.00. The options total $3,289.41, and the destination charge is $275.00. You also find out that the dealer pays about 94 percent of the base price and 97 percent of the total options. What should you estimate as the dealer’s cost for the car? 15. Jeff Bordon found a three-year-old sports car advertised for $22,500.00. Its average retail value is $21,000.00. It has a stereo system valued at $700.00 and a $150.00 theft recovery system. Because the vehicle has high mileage, $300.00 can be deducted. What is the average retail price for this vehicle? 16. If your annual base insurance premium is $2,330.00 and your driver-rating factor is 1.25, what is your annual premium? 17. For 100/300 bodily injury limits and $100,000.00 property damage limits, your base premium is $337.00. The base premium is $122.50 for $50-deductible comprehensive insurance and $289.26 for $50-deductible collision insurance. What is your annual base premium? 18. For the past two years, you have recorded the costs of operating your car. The fixed costs totaled $1,109.56 and the variable costs totaled $1,877.39. You drove the car 25,379 miles. What was the cost per mile for you to operate the car? 19. Your teacher purchased a car for $26,895.00 two years ago. He drove it 18,236 miles and kept a record of his expenses. His variable costs were $2,368.00. His fixed costs for insurance and license were $1,856.00. He estimates the car’s present value at $15,250.00. What was his cost per mile for him to operate this car? 20. You recently leased a new car. Your payments are $352.00 per month for 36 months. Your deposit was $2,500.00. You paid a title fee of $80.00 and a license fee of $36.00. What is your total lease cost? 21. Kim Peterson rented a car for 8 days at $32.99 per day, plus $0.28 per mile. To protect herself in case of an accident, she purchased the collision waiver for $10.00 per day and paid $75.00 for gasoline to cover the 732 miles she drove. What was her total cost to rent the car? 22. Jessica Kline leased a car. She must pay 48 monthly payments of $218.00, no deposit, a $90.00 title fee, and a $24.00 license fee. What is her total lease cost? 23. Zelda John has found a home she would like to purchase and the seller accepts her offer of $185,450.00. If Zelda makes a down payment of 8 percent, what is the amount of her mortgage loan? Use the following chart to answer questions 24, 25, and 26. Monthly Payment for a $1,000.00 loan Interest Length of Loan in Years Rate 20 25 30 6.00% $7.16 $6.44 $6.00 6.50% $7.46 $6.75 $6.32 7.00% $7.75 $7.07 $6.65 7.50% $8.06 $7.39 $6.99 8.00% $8.36 $7.72 $7.34 8.50% $8.68 $8.05 $7.69 24. Clair and Sam Tresco purchased a vacation home for $95,000.00. The bank required a 5 percent down payment. The rest was financed at 6 percent for 20 years. What is the amount of their monthly payment? 25. Doug and Sheila Waters agreed upon the price of $156,300.00 for their first home. They plan to make a 15 percent down payment and finance the rest at 6.5 percent for 30 years. What is the total amount, excluding their down payment, to be paid? 26. Misty Billings and her husband decide to purchase a townhouse for $189,000.00. The lender requires a 3 percent down payment for a 30-year loan at 7.5 percent. At the end of the 30 years, what will be the total amount of interest charged? 27. Meagan Morgan agreed to purchase a house for $125,200.00. Keystone Mortgage is willing to lend her money at 8 percent for 25 years provided Meagan can make a down payment of $5,000.00. The total closing costs are 3 percent of the amount of the mortgage loan. What is the total of the closing costs? 28. Shelly Morrison obtained a 20-year, $117,000.00 mortgage, with an interest rate of 6 percent. For her first payment, what is the amount of interest? 29. Barb Miller obtained a mortgage loan for $236,510.00 at 7 percent for 20 years. Her monthly payment is $1,833.65. How much of the first payment is for principal? 30. Kelly Cooper’s home in Bloomsburg, Pa, has an assessed value of $33,500.00. The tax rate where she lives is 35.1 mills. What is her annual real estate tax? 31. Debbie Gardner lives in Baldwin, New York, where the rate of assessment is 75 percent and the tax rate is 24.92 mills. A tax assessor has determined that the market value of her home is $485,000.00. What is her real estate tax for 1 year? 32. Zach Robert’s home has an estimated replacement value of $172,000.00. He has insured his home for 90 percent of its replacement value. What is the amount of coverage on his home? 33. Dan Martz’s home is insured for 100 percent of its $250,000.00 replacement value. The home has a brick construction and has been rated fire protection class 5. What is his annual insurance premium? Use the chart below to answer this question. Amount of Insurance Coverage $40,000 $45,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $120,000 $150,000 $200,000 $250,000 $300,000 $400,000 $500,000 Homeowners Insurance Premiums Annual Premiums for a Typical Homeowners Policy Fire Protection Class Brick / Masonry Veneer Wood Frame 1-6 7-8 9 10 11 1-6 7-8 9 10 $166 $170 $225 $237 $270 $178 $183 $237 $248 173 178 233 244 280 187 191 248 260 178 183 241 254 290 190 195 254 265 191 196 259 273 313 205 211 273 287 213 216 285 299 343 225 231 299 315 241 248 328 343 394 257 265 343 363 268 276 365 384 441 289 296 384 403 298 307 407 426 490 320 329 426 449 354 364 484 508 584 381 391 508 534 459 471 625 657 755 493 506 657 692 616 633 841 884 1,017 662 680 884 931 737 754 961 1,021 1,167 780 798 1,021 1,086 879 901 1,147 1,218 1,394 931 953 1,218 1,295 1,021 1,045 1,331 1,413 1,617 1,067 1,105 1,413 1,504 1,309 1,340 1,707 1,812 2,074 1,385 1,418 1,812 1,929 11 $285 298 304 328 360 415 464 515 614 794 1,070 1,243 1,483 1,723 2,209 34. You are considering purchasing a new home and estimate the following monthly housing expenses: $701.56 for the mortgage payment, $52.35 for the insurance premium, $136.12 for real estate taxes, $85.13 for electricity, $44.99 for telephone service, and $42.90 for water/sewer. What would be your total monthly housing cost? 35. Gerry McCabe is employed by a local factory. The PPO annual premium is $6,825.00. His employer pays 80 percent of the total cost, and Gerry’s contribution is deducted from his paycheck. What is his biweekly deduction? 36. Jack and Jill Hill pay 100 percent of a PPO insurance premium of $7,296.00 annually. They also have a dental plan that costs $1,364.00 annually and a vision plan that costs $798.00 annually. What is their total monthly premium for all their insurance? 37. Kim Matthews is married and has a health insurance plan with the benefits shown in the chart below. Her non-network health care costs for last year included co-payments for 9 physician visits and 4 specialist visits. Following hospital surgery, she made co-payments for 22 physical therapy visits at $80.00 per visit, and she had 7 visits from a nurse at $65.00 each. Her hospital admission charge was $225.00 and her hospital bill was $8,283.49. What amount did she pay? Health Care Benefits Schedule Network Annual Deductible Hospital Charges Home Health Care Co-insurance/ Co-payment Single Family ---First 50 visits Over 50 Physician visit $375.00 $800.00 85%** 100%** 90%** $10.00 NonNetwork* $500.00 $1,750.00 65%** 90%** 90%** $12.00 Specialist $25.00 $30.00 Physical Therapy First 15 visits $15.00 75%** Over 15 visits 80%** 70%** Emergency Room $60.00 $50.00 Ambulance $30.00 $30.00 *Non-Network refers to a health care provider that doesn’t have a contract with the health plan administrator. **Percentage of total cost that is covered by the health care company. 38. Roseanne Robinholt is 35 years old. She wants to purchase a $250,000.00, 5-year term life insurance policy. The premium per $1,000.00 is $6.22. What will her annual premium be? 39. Cheri Kile took out a $275,000.00, 10-year term life insurance policy at age 50. The premium per $1,000.00 was $5.32. She will be 60 years old this year. The premium per $1,000.00 will be $8.85. What is the percent increase? Round your answer to the nearest percent. 40. Erica Stabler is 25 years old. She wants to purchase a limited payment policy valued at $160,000.00 until age 65. What is Erica’s annual premium? Use the chart below to answer this question. Annual Premiums per $1,000.00 of Life Insurance Paid Up at Age 65 Age Male Female 20 $11.75 $10.00 25 $13.50 $11.75 30 $16.75 $13.50 35 $22.00 $17.65 40 $28.50 $24.50 45 $38.75 $33.75 50 $56.75 $46.75 55 $57.00 $50.60 41. Lacey Drake has a health insurance plan with a $500.00 deductible. The plan covers 90 percent of her hospital charges. Lacey’s recent health care costs include $100.00 in copayments and a hospital bill of $8,375.00. What amount did she pay? 42. Faith Albertson has a whole life insurance policy that has an annual premium of $337.00. She wants to pay the premium semiannually. The semiannual premium is 51.5 percent of the annual premium. What will her semiannual payments be? 43. Phil Bailey invested $10,000.00 in a 2-year certificate of deposit that earns interest at an annual rate of 4.15 percent compounded quarterly. The amount per $1.00 is 1.12368. What is the total interest earned? 44. Allison Streeter invested $2,500.00 in a 1-year certificate of deposit that earns interest at an annual rate of 3.5 percent compounded daily. The amount per $1.00 is 1.08429. What will the total amount be at maturity? 45. Wayne Jacobs invested $5,000.00 in a certificate of deposit for 1 year. The certificate earns interest at an annual rate of 6.5 percent compounded daily. The amount per $1.00 is 1.05249. What is the effective annual yield? Round your answer to the nearest hundredth of a percent. 46. Jay Ross purchased 625 shares of an electronics corporation stock at $33.82 per share. His online stockbroker charged him a $35.00 commission. What was the total cost for the stock? 47. Sara DeFelice purchased 1,200 shares of a corporation stock at $18.72 per share. Her stockbroker’s commission was $25.00 for fewer than 1,000 shares, or $0.03 per share for 1,000 or more. What was the total cost for the stock? 48. You bought 210 shares of Creamery stock at $52.38 per share. The company paid annual dividends of $2.87 per share. What was your total annual dividend? 49. Brian Streater bought 700 shares of stock for $18,466.00. He sold the stock for $26.02 per share and paid a sales commission of $50.00. What was the profit or loss from this sale? Your answer must indicate the amount and whether it was a profit or loss. 50. Dolly Rogers purchased a $2,000.00 bond at the quoted price of 82 interest at a rate of 4 percent. What was the cost of the bond? 1 . The bond paid 4
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