Topic Test Answers

The following table gives annual life insurance premiums per $1,000 of face value. Use the table to determine the annual premium for a $110,000 5-year term policy for a 22-year-old female. Round your answer to the nearest cent.

You purchase five municipal bonds on the first of the year. The current market value price is 101. The commission charge is $8 per bond. What is the cost of the purchasing these bonds?

Interest per every $100 financed# of Monthly PaymentsAnnual Percentage Rate (APR) 11%11.5%12%12.5%13%13.5%14%14.5%15%2411.8612.4212.9813.5414.1014.6615.3215.8016.372512.3512.9313.5214.1014.9615.2815.8716.4617.06You plan on financing a home theater system for $1,752. The audio shop offers a 15% APR for a 25 month loan. Use this information, and the table above, to determine the monthly payments. Round your answer to the nearest cent.

You have just applied, and have been approved for a $175,000 mortgage. The rate quoted to you by the lender is 5.5% for a 30 year fixed mortgage. Use the provided table to determine how much of your first month’s payment goes towards the principal.

Determine the term life insurance amount per thousand on a 20-year-old male for a 10-year policy given that the face value of the policy is $65,000 and the annual premium is $291.85.

Your current CD matures in a few days. You would like to find an investment with a higher rate of return than the CD. Stocks historically have a rate of return between 10% and 12%, but you do not like the risk involved. You have been looking at bond listings in the newspaper. A friend wants you to look at the following corporate bonds as a possible investment. What was the price of the XYZ bond on the previous day?

The following table gives annual life insurance premiums per $1,000 of face value. Use the table to determine the face value of a 10-year term insurance policy on a 24-year-old male given that the annual premium for the insurance policy is $359.25. If need be, round your answer to the nearest cent.

You have recently taken a loan out in the amount of $210,000 for a new home. You place 10% down and finance the remaining balance. As part of the closing cost, you are required to pay 4 points. Determine the amount of the loan prior to the addition of 4 points to the loan. Round your answer to the nearest cent.

You are going to college in the fall. You have just heard from your roommate and he asks you to bring the stereo system for the dorm room. You find the perfect system for $1750. You have to put 25% down and you can pay the balance in 18 equal installments. The clerk tells you that you will pay a total finance charge of $112. How much is the down payment and what is the total amount financed including the finance charge?

You have decided to purchase a new computer with the Amtel processor. The new processor is the latest release of the hyperduoraging core threading processors. You local computer store has a computer with this processor and is offering a 36 month installment plan to finance the computer. The store requires no down payment. The salesperson tells you that you can finance the computer with 36 monthly payments of $98.20. Determine the total amount paid.

Your father, at the age of 40, purchased a Whole Life insurance policy with a face value of $110,000. The permanent insurance amount for a Whole Life insurance policy for a healthy 40-year-old male is $27.17. Your father decided to terminate the policy at the age of 47. Determine the annual premium and use the table below to determine the value of the Extended term insurance policy.

When buying a house, it is a good idea to calculate how much your monthly payment will be to:

In order to purchase a home, a family borrows $159,000 at 6.5% for 30 years. Use the table to find their monthly payment. Round the answer to the nearest cent.

You are borrowing $4,000 to purchase a HD plasma TV using a 36 month installment plan. Determine the annual percentage rate (APR) using the APR formula given that the interest charge is $782.96. Round your answer to the nearest whole percent.

The Great Outdoors is having a sale on their road bikes. The store is also offering financing to those who qualify. The road bike that you are interested in is a Bianrekmondiant that is on sale for $2,199. The sales associate informs you that the closed-end installment loan offered by the store is a 36 month installment plan with monthly payments of $82.83. Determine the finance charge (interest) of the installment loan.

Given that your monthly expenses for the house that you want to purchase totals $1,562.30 (this includes the house payment, annual taxes, and the annual cost for home owners insurance) and your gross annual salary is $66,955.71, determine if you qualify for the purchase of the new home. If yes, what percent do you qualify by?

When looking at a rate table for supplemental term life insurance, what are the rates based on?

You purchase a new laptop computer for $1,200. You put a 5% down payment and $55 per month on a 24 month purchase plan. What is the amount of the down payment?