Topic Test Answers

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 new road bike for $2,500. The bike shop offers a 13.5% APR for a 24 month loan. Use this information, and the table above, to determine the monthly payments. Round your answer to the nearest cent.a.$104.17c.$210.10b.$119.44d.$366.50

You purchase six municipal bonds on the first of the year. The current market value price is 103. The commission charge is $5 per bond. What is the cost of the purchasing these bonds?a.$6210b.$633c.$648d.$3090

Determine the term life insurance amount per thousand on a 23-year-old male for a 5-year policy given that the face value of the policy is $151,625 and the annual premium is $397.26. Round your answer to the nearest cent.a.$2.69c.$2.62b.$0.00269d.$0.00262

You have just applied, and have been approved for a $250,000 mortgage. The rate quoted to you by the lender is 5.0% for a 30 year fixed mortgage. Use the table provided to determine how much of your first month’s payment goes towards the principal. a. $359.21 c. $339.21 b. $393.21 d. $300.83 Please select the best answer from the choices provided

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 price would you pay for each bond if you purchased one of them today? (Remember the face value is $1000.) a. ABC: $1047.50 XYZ: $1005.00 b. ABC: $1104.75 XYZ: $1100.50 c. ABC: $872 XYZ: $983 d. ABC: $750 XYZ: $840 Please select the best answer from the choices provided

The following table gives annual life insurance premiums per $1,000 of face value. Use the table to determine the annual premium for a $75,000 10-year term policy for a 25-year-old male. Round your answer to the nearest cent. a. $363.75 c. $183.75 b. $207.75 d. $338.25 Please select the best answer from the choices provided

You have decided to purchase a new stereo system made by Ownur 3ar5. Your local audio store has the company’s latest stereo 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 stereo with 36 monthly payments of $52.31. Determine the total amount paid. a. $1874.99 c. $1,880.10 b. $1877.23 d. $1,883.16 Please select the best answer from the choices provided

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? a. $5546.25 b. $5102.50 c. $5062.50 d. $546.25 Please select the best answer from the choices provided

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? a. 100 b. 100 c. 100 d. 100 Please select the best answer from the choices provided

Using the table below, determine how much you will receive in dividends for the year from Cisco Systems given that you currently hold 100 shares. a. $15 c. $230.25 b. $99.70 d. $19.19 Please select the best answer from the choices provided

Your father, at the age of 40, purchased a Whole Life insurance policy with a face value of $80,210. 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 50. Use the following table to determine the cash value of the policy upon cancellation. a. $561.47 c. $3,609.45 b. $1,684.41 d. $5,213.65 Please select the best answer from the choices provided

Examine the following typical corporate bond listing: In the name column, NYTel is the abbreviated name of the company (New York Telephone) issuing the bond. What was the previous closing price of the bond? What was the dollar amount? a. 7% lower; $945 b. 7% higher; $1090 c. % lower; $1016.25 d. % higher; $1018.75 Please select the best answer from the choices provided

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. If you buy five of the XYZ bonds with $8 commission for each, how much will it cost? a. $5025 b. $5065 c. $1005 d. $1045 Please select the best answer from the choices provided