Question 1

Solve the problem. Round to the nearest cent.
-On October 1, the unpaid balance in an account was $114. No payments were made that month. The finance charge rate was 1.4% per month of the average daily balance. Find the finance charge
For the month of October.

Accepted Answer

A)  $1.74
B)  $1.60
C)  $1.50
D)  $1.46 B

Question 2

Solve the problem.
-Use the inflation proportion to estimate the 2005 price of a jacket which costs $470 in 2000. Assume that the price increased at the average annual rate shown in the table below. Round your answer to
The nearest dollar. $\begin{array}{l|c|c}
\text { Year } & \text { Average CPI-U } & \text { Percent Change in CPI-U } \
\hline 1999 & 166.6 & 2.2 \
2000 & 172.2 & 3.4 \
2001 & 177.1 & 2.8 \
2002 & 179.9 & 1.6 \
2003 & 184.0 & 2.3 \
2004 & 188.9 & 2.7 \
2005 & 195.3 & 3.4
\end{array}$

Accepted Answer

A)    $55\$ 55$55 
B)    $56\$ 56$56 
C)    $53\$ 53$53 
D)    $52\$ 52$52 C

Question 3

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date.
-Regular Monthly Payment: $236.11 APR: 10%
Remaining Number of Scheduled Payments After Payoff: 6

Accepted Answer

A)  $128.68
B)  $42.26
C)  $73.67
D)  $40.46 D

Question 4

Solve the problem. Assume that simple interest is being calculated in each case. Round the answer to the nearest cent
unless otherwise indicated.
-Martin takes out a simple interest loan at 4 %. After 10 months the amount of interest on the loan is $80.93. What was the amount of the loan? Round to the nearest dollar.

Accepted Answer

A)  $2428
B)  $2768
C)  $24
D)  $2389

Question 5

$1660 at 6% for 4 months

Accepted Answer

A)  $398.40
B)  $33.20
C)  $24.90
D)  $3320.00

Question 6

Find the total return earned by the given bond.
-

Accepted Answer

A)    $216\$ 216$216 
B)    $432\$ 432$432 
C)    $2592\$ 2592$2592 
D)    $21,600\$ 21,600$21,600

Question 7

Solve the problem. Use the Annual Percentage Rate Table if necessary.
-Find the APR to the nearest half percent, for the following data.

Accepted Answer

A)    9.5%9.5 \%9.5% 
B)    9.0%9.0 \%9.0% 
C)    10.0%10.0 \%10.0% 
D)    8.5%8.5 \%8.5%

Question 8

Jerry's Bank charges 1.3% per month on the average daily balance as well as the following special fees.
Cash advance fee: 2.5% {minimum of $2 and maximum of $10}
Late payment fee: $30
Over the credit limit fee: $35
One month Jerry was on vacation and did not get his account payment in on time and also went
Over the credit limit. He also used his card for 7 $150 cash advances. His average daily balance was
$3200 for the month. Find the total of all charges which will be on his account next month.

Accepted Answer

A)  $102.85
B)  $120.25
C)  $132.85
D)  $171.25

Question 9

Solve the problem.
-Joe is buying some kitchen equipment for his new apartment. The total cost is $2300 and he places a down payment of $230. There is add-on interest of 12%. What is the total amount he will be
Financing?

Accepted Answer

A)  $2070.00
B)  $2990.00
C)  $2300.00
D)  None of the above is correct.

Question 10

The following problem involves adjustable-rate mortgage. You will need a table of monthly payments.
-Harry has a 1-year ARM for $85,000 over a 30-year term. The margin is 2%, and the index rate starts out at 8.5% and increases to 10% at the first adjustment. The balance of principal at the end of
The first year is $74,113.56. Find the amount of monthly payment for the first month of the first year.

Accepted Answer

A)  $689.42
B)  $777.53
C)  $718.14
D)  None of the above is correct.

Question 11

Solve the problem.
-Tony and Barb decide to buy new living room furniture worth $6000. They make a down payment of $600. Barb decides they should pay off what they owe in 30 monthly payments. Find the amount
Of the monthly payment at 8% add-on interest.

Accepted Answer

A)  $540.00
B)  $3780.00
C)  $6480.00
D)  $216.00

Question 12

Solve the problem.
-The following information on Company X appears in a stock table.  Find the amount received by the seller of 740 shares of Company X at the day's closing price. Deduct sales expenses which consist of the broker's commission and SEC fee. Assume that the
Transaction is broker-assisted and that the discount broker's commissions are as follows: $\begin{array}{l|l}
\text { Principal Amount } & \text { Commission } \
\hline \text { Up to } \$ 2499.99 & \$ 35+1.7 \% \text { of principal } \
\$ 2500.00-\$ 6249.99 & \$ 65+0.66 \% \text { of principal } \
\$ 6250.00-\$ 19,999.99 & \$ 76+0.34 \% \text { of principal }
\end{array}$

Accepted Answer

A)    $24,028.05\$ 24,028.05$24,028.05 
B)    $24,252.64\$ 24,252.64$24,252.64 
C)    $24,319.97\$ 24,319.97$24,319.97 
D)    $24,319.23\$ 24,319.23$24,319.23

Question 13

Solve the problem.
-The following information on Company X appears in a stock table.  Find the cost to purchase 680 shares of Company X at the day's closing price. Assume that the transaction is automated and includes typical discount broker's commissions as follows: $$\begin{array} { l | l } 
\text { Number of Shares } & \text { Commission } \
\hline \text { Up to } 1000 & \$ 29.95 \
\text { More than } 1000 & 3 \text { cents per share }
\end{array}$$

Accepted Answer

A)  $23,007.15
B)  $22,986.75
C)  $22,977.20
D)  $22,956.80

Question 14

Solve the problem. If necessary, refer to the table below. 
-In order to purchase a home, a family borrows $150,000 at an annual interest rate of 7.7% to be paid back over a 15-year period in equal monthly payments. What is their monthly payment? Round
The answer to the nearest cent.

Accepted Answer

A)  $1407.62
B)  $10,520.99
C)  $962.50
D)  $1633.00

Question 15

Solve the problem.
-The following information on Company X appears in a stock table. Find the price-to-earnings ratio for Company X.

Accepted Answer

A)  22
B)  33.69
C)  39.16
D)  25.96

Question 16

Find the present value for the given future amount. Round to the nearest cent.
-A = $4200, 9 years r = 8% compounded annually

Accepted Answer

A)  $8395.82
B)  $2269.13
C)  $2098.95
D)  $2101.05

Question 17

Solve the problem. Use an annual percentage rate table if necessary.
-A farmer buys a new tractor for $35,000. He makes a down payment of $10,000 and finances the balance at 10.5% APR over 48 months. Before making the 24th payment, the farmer decides to pay
The remaining balance on the loan. How much interest will the farmer save (use the actuarial
Method)?

Accepted Answer

A)  $2183.60
B)  $1735.96
C)  $1544.99
D)  $1559.71

Question 18

Find the present value for the given future amount. Round to the nearest cent.
-A = $4000, 12 years r = 4% compounded semiannually

Accepted Answer

A)  $2486.89
B)  $2498.39
C)  $1513.11
D)  $6433.75

Question 19

On the January 25 billing date, Vivian had a balance due of $315.06 on her credit card. The transactions during the following month were: $\begin{array}{lll}
\text { January } 26 & \text { Charge : curtains } & \$ 331 \
\text { January } 27 & \text { Payment } & \$ 132.62 \
\text { February } 16 & \text { Charge: tires } & \$ 206.81
\end{array}$ The interest rate on the card is 1.1% per month. Using the average daily balance method, find the
Finance charge on February 25 (January has 31 days).

Accepted Answer

A)  $6.23
B)  $6.33
C)  $1.97
D)  $6.28

Question 20

Assume that the given mutual fund investment earns monthly returns that are reinvested and subsequently earn at the
same rate. Find the beginning value of the investment, first monthly return, or effective annual rate of return as indicated.
- Find the beginning value of the investment.

Accepted Answer

A)  $72.16
B)  $4454.05
C)  $4526.21
D)  $4008.65

Exam 13: Personal Financial Management

Solve the problem. Round to the nearest cent. -On October 1, the unpaid balance in an account was $114. No payments were made that month. The finance charge rate was 1.4% per month of the average daily balance. Find the finance charge For the month of October.

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date. -Regular Monthly Payment: $236.11 APR: 10% Remaining Number of Scheduled Payments After Payoff: 6

$1660 at 6% for 4 months

Find the total return earned by the given bond. - $Find the total return earned by the given bond. - A) \$ 216 B) \$ 432 C) \$ 2592 D) \$ 21,600$

Solve the problem. -Joe is buying some kitchen equipment for his new apartment. The total cost is $2300 and he places a down payment of $230. There is add-on interest of 12%. What is the total amount he will be Financing?

Solve the problem. -Tony and Barb decide to buy new living room furniture worth $6000. They make a down payment of $600. Barb decides they should pay off what they owe in 30 monthly payments. Find the amount Of the monthly payment at 8% add-on interest.

Solve the problem. If necessary, refer to the table below. -In order to purchase a home, a family borrows $150,000 at an annual interest rate of 7.7% to be paid back over a 15-year period in equal monthly payments. What is their monthly payment? Round The answer to the nearest cent.

Solve the problem. -The following information on Company X appears in a stock table. Find the price-to-earnings ratio for Company X.

Find the present value for the given future amount. Round to the nearest cent. -A = $4200, 9 years r = 8% compounded annually

Find the present value for the given future amount. Round to the nearest cent. -A = $4000, 12 years r = 4% compounded semiannually

Assume that the given mutual fund investment earns monthly returns that are reinvested and subsequently earn at the same rate. Find the beginning value of the investment, first monthly return, or effective annual rate of return as indicated. - Find the beginning value of the investment.

Exam 13: Personal Financial Management

Solve the problem. Round to the nearest cent. -On October 1, the unpaid balance in an account was $114. No payments were made that month. The finance charge rate was 1.4% per month of the average daily balance. Find the finance charge For the month of October.

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date. -Regular Monthly Payment: $236.11 APR: 10% Remaining Number of Scheduled Payments After Payoff: 6

$1660 at 6% for 4 months

Find the total return earned by the given bond. -

Solve the problem. Use the Annual Percentage Rate Table if necessary. -Find the APR to the nearest half percent, for the following data.

Solve the problem. -Joe is buying some kitchen equipment for his new apartment. The total cost is $2300 and he places a down payment of $230. There is add-on interest of 12%. What is the total amount he will be Financing?

Solve the problem. -Tony and Barb decide to buy new living room furniture worth $6000. They make a down payment of $600. Barb decides they should pay off what they owe in 30 monthly payments. Find the amount Of the monthly payment at 8% add-on interest.

Solve the problem. If necessary, refer to the table below. -In order to purchase a home, a family borrows $150,000 at an annual interest rate of 7.7% to be paid back over a 15-year period in equal monthly payments. What is their monthly payment? Round The answer to the nearest cent.

Solve the problem. -The following information on Company X appears in a stock table. Find the price-to-earnings ratio for Company X.

Find the present value for the given future amount. Round to the nearest cent. -A = $4200, 9 years r = 8% compounded annually

Find the present value for the given future amount. Round to the nearest cent. -A = $4000, 12 years r = 4% compounded semiannually

Assume that the given mutual fund investment earns monthly returns that are reinvested and subsequently earn at the same rate. Find the beginning value of the investment, first monthly return, or effective annual rate of return as indicated. - Find the beginning value of the investment.

Find the total return earned by the given bond. - $Find the total return earned by the given bond. - A) \$ 216 B) \$ 432 C) \$ 2592 D) \$ 21,600$