Loan Payments
John takes out a single-payment loan for $5,000 to be repaid in 270 days. The loan has an annual interest rate of 4.5%. What is the loan's maturity value assuming ordinary interest?
$5,168.75
Over time, the amount of every periodic loan payment that goes to interest ____________.
Decreases
increases, decreases
This is a deposit made up front when purchasing a property.
What is a down payment?
What is Serbia?
David takes out a three-year installment loan for $25,000. The loan has an annual interest rate of 6.5%. What is his monthly payment?
$766.23
When paying off a loan early, one must pay the ___________ and the _____________.
Bella's savings account offers an annual interest rate of 3.5%, and interest is compounded quarterly. If she deposits $10,000 into her account today, what will be her account balance after 2 years?
$10,721.82
Every monthly mortgage payment can be divided into these two things.
What are principal and interest?
This song was partially inspired by the views atop Pike's Peak.
America the Beautiful
Jerome takes out a $250,000, 30-year mortgage at an APR of 5.75%. What is his monthly payment?
$1,458.93
A mortgage has an initial principal value of $400,000, a term of 30 years, and an APR of 6.75%. The loan's monthly payment is $2,594.39. After the 10th payment, the loan has a balance of $396,467.58.
What is the amount of interest for the 11th payment?
$2,230.13
Leroy deposits $6,000 into his investment account, which he expects will earn an annual return of 6.5%. If he assumes interest is earned continuously, what is his expected account balance after 3 years?
$7,291.87
This is the dollar amount assigned to a property for taxation purposes. This is the amount of a property's value we pay taxes on.
What is assessed value?
Name the four most populous cities in the United States.
New York City, Los Angeles, Chicago, Houston
Julie wants to purchase a home for $400,000. She makes a down payment of 15% up front and finances the rest of the purchase with a mortgage. Her mortgage has a term of 25 years and an annual interest rate of 7%. What is her monthly payment?
$2,403.05
A mortgage has an initial principal value of $250,000, a term of 25 years, and an APR of 5.5%. The loan's monthly payment is $1,535.22. After the 20th payment, the loan has a balance of $241,863.69.
What is the amount toward principal for the 21st payment?
$426.68
Shawna has the choice of accepting a $10,000 bonus now, or a $10,500 bonus in 6 months. If her savings account earns an annual interest rate of 5.5%, and interest is compounded monthly, which option should Shawna theoretically choose?
$10,500 in 6 months
1. This is the amount one must pay out of pocket before insurance coverage kicks in.
2. This is the amount paid to an insurance company for coverage.
1. What is a deductible?
2. What is a premium?
This is the name of this album by The Beatles.
Sgt. Pepper's Lonely Hearts Club Band
Rose has a 30-year mortgage for $350,000 at an annual interest rate of 5.5%. What is the finance charge on her loan?
$365,414.14
A mortgage has an initial principal value of $300,000, a term of 30 years, and an APR of 5%. The loan's monthly payment is $1,610.46. After the 30th payment, the loan has a balance of $288,506.57.
What is the loan's balance after the 31st payment?
$288,098.22
$19,217.07
This is an asset composed of a pool of mortgages that provides investors with returns based on the cash flows from the mortgages.
What is a mortgage backed security?
A raffle contains 1,000 tickets. 500 of them win $0, 250 of them win $5, 100 of them win $10, 75 of them win $20, 50 of them win $30, and 25 lose $20. What is the expected value of one ticket?
$4.75