1. Beverly Frost bought a home for $190,000 with a down payment of $19,000 at 7% for 25 years. Since then the rate has risen to 9%. How much more would her monthly payment be if she bought the house at 9%?

a.

$143.00

b.

$208.97

c.

$436.40

d.

None of these

e.

$227.43

1 points

Question 2

1. The total cost of interest is equal to the total of all monthly payments:

a.

Divided by amount of mortgage

b.

Minus amount of mortgage

c.

Times amount of mortgage

d.

Plus amount of mortgage

e.

None of these

1 points

Question 3

1. On March 12, Bill Jones accepted a $12,000 note in granting a time extension of a bill for goods purchased by Ron Prentice. Terms of the note were 13% for 90 days. On April 24, Bill could no longer wait for the money and discounted the note at Able Bank at a discount rate of 14%. The proceeds to Bill is:

a.

None of these

b.

$12,390.00

c.

$12,047.90

d.

$12,163.54

e.

$12,048.90

1 points

Question 4

1. Marsha Terban bought a home for $119,000 with a down payment of $19,000. Her rate of interest is 12 1/2% for 35 years. The balance of the mortgage at the end of the first month is:

a.

None of these

b.

$99,669.76

c.

$99,985.67

d.

$3.33

e.

$98,944

1 points

Question 5

1. A simple discount note results in:

a.

Interest deducted when note is paid back

b.

None of these

c.

Interest deducted in advance

d.

Lower interest costs than a simple interest note

e.

Same interest costs as a simple interest note

1 points

Question 6

1. Tiffany purchased a $10,000, 13-week Treasury bill that is paying 2.25%. What is the effective rate on this T-bill?

a.

2.7%

b.

2.0%

c.

2.26%

d.

2.2%

e.

None of these

1 points

Question 7

1. Amanda Chin purchased a home for $296,000; she put 20% down with a mortgage rate of 6% for 30 years. What is Amanda's monthly payment?

a.

$1,240.80

b.

$1,402

c.

$1,420.80

d.

None of these

e.

$1,776

1 points

Question 8

1. An amortization schedule shows:

a.

Increase in loan outstanding

b.

The