Exam 4: Managing Money

You need a loan of $100,000 to buy a condo. Calculate your monthly payments and total closing costs for each choice. -Choice 1: 30 -year fixed rate at $4.25 \%$ with closing costs of $\$ 1137$ and 1 points Choice 2: 20-year fixed rate at $3.75 \%$ with closing costs of $\$ 1137$ and 3 points

Solve the problem. -Kerry invests $362 in a savings account that earns 5.4% compounded annually. Andy invests $362 in a savings account that earns 7% compounded annually. How much is in each of their accounts After 10 years and after 20 years?

Solve the problem. -Calculate the annual interest for a $1000 Treasury bond with a current yield of 3.4% that is quoted at 116.4 points.

Decide whether the statement makes sense. Explain your reasoning. -Before the government borrows money from its own trust funds such as the Social Security trust fund to finance a deficit, it first tries to cover the deficit by borrowing from the public .

Provide an appropriate response. -The relative change in the investment value is the ______.

Solve the problem. Refer to the table if necessary. -Jeff earned wages of $48,267, received $1837 in interest from a savings account, and contributed $ 3210 to a tax deferred retirement plan. He was entitled to a personal exemption of $3900 and had Deductions totaling $7314. Find his taxable income.

Determine whether the spending pattern described is at, above, or below the national average. Assume that any salariesor wages are after tax. -A couple over the age of 65 with a fixed monthly salary of $4200 spends $290 per month on entertainment.

Write the word or phrase that best completes each statement or answers the question.Decide whether the statement makes sense. Explain your reasoning. -I was offered a 30-year mortgage at a fixed rate of 8% or an adjustable rate mortgage that starts at 6% for the first year. The ARM has no rate cap, but I will take that one anyway because it doesn't look like interest rates will be going up any time soon.

Solve the problem. -In a recent year, the total receipts for the US federal government were $2154 billion. The total outlays were $2472 billion. The deficit was $318 billion. What would the deficit have been, if there Had been a 0.5% decrease in total outlays?

Answer the question. -You have a choice between going to an in-state college where you would pay $6000 per year for tuition and an out-of-state college where the tuition is $12,000 per year. The cost of living is higher At the in-state college, where you can expect to pay $1000 per month in rent, compared to $600 per Month at the other college. You will pay $2000 per year to travel back and forth from the Out-of-state college. Assuming all other factors are equal, which is the less expensive choice on an Annual basis? Find the cost of each college for one year.

Solve the equation for the unknown quantity. - $5 z + 12 = 4 z + 6$

Provide an appropriate response. -A progressive income tax means that people with a higher income pay at a higher tax rate.

Answer the question. -You could take a 15-week, three-credit college course, which requires 10 hours per week of your time and costs $400 per credit-hour in tuition. Or during those hours you could have a job paying $ 12 per hour. What is the net cost of the class compared to working?

Evaluate or simplify the following the expression. - $2 ^ { 2 } \times 2 ^ { 6 }$

Solve the problem. -You have a choice between a 30 -year fixed rate loan at $5 \%$ and an ARM with a first-year rate of $2 \%$ . The ARM rate rises to $6.5 \%$ at the start of the third year. Neglecting compounding and changes in principal, estimate your monthly savings with the ARM during the first year on a $\$ 180,000$ loan.

Solve the problem. -In 2011, a country's government projected total receipts of $2590 billion ($2.590 trillion)and a deficit of $223 billion for 2013. If outlays turn out to be higher than expected by 6% while receipts Turn out to be lower by 5%, what would the 2013 surplus or deficit be?

Assume you have a balance of $3200 on your credit card that you want to pay off. Calculate your monthly payment andtotal payment under the given conditions. Assume you make no additional charges to the card. -The credit card APR is 18% and you want to pay off the balance in 4 years.

Evaluate or simplify the following the expression. - $512 ^ { - 1 / 3 }$

Find the monthly interest payments in the situation described. Assume that monthly interest rates are 1/12 of annualinterest rates. -Derek bought a new car for $\$ 34,000$ . He made a down payment of $\$ 18,000$ and financed the balance through the car dealer. He was unable to make the first monthly payments. Until he makes a payment he is paying $2 \%$ interest per month on the balance.

Solve. -Calculate the monthly payment for a home mortgage of $439,000 with a fixed APR of 4.0% for 30 years.