Understanding College Savings — Unit test Answers

Which of the following statements is true?a.A 30 year fixed mortgage will always result in the lowest payment.b.You must have at least a 20% down payment to get a competitive interest rate.c.The lower your interest rate is, the lower your monthly payments are.d.The faster you pay off your mortgage, the lower your monthly payments are.

The Johnsons are buying a house that costs $210,000 and can afford a 20% down payment. If the Johnsons want the lowest monthly payment, which loan option would you recommend?a.30 year FHA, 3.5% down at a fixed rate of 6.25%b.30 year fixed, 20% down at a fixed rate of 6%c.30 year fixed, 10% down at a fixed rate of 6%d.15 year fixed, 20% down at a fixed rate 5.5%

Kaleb wants to get a payday loan in the amount of $375. He knows that the annual percentage rates (APR) for these types of loans are high, but he is hoping to find one that has an APR of 40%. If Kaleb finds a business that charges a fee of $37 for the loan, what would the term of the loan need to be in order for Kaleb to get his desired APR?

Tyrell bought a house for $186,500. He has a 30 year mortgage with a fixed rate of 6.5%. Tyrell’s monthly payments are $1,060.93. How much was Tyrell’s down payment? a. $12,120 b. $18,650 c. $27,975 d. $37,300 Please select the best answer from the choices provided

Nick found his dream home that has a purchase price of $192,000. Nick earns $3,325 a month and wants to spend no more than 30% of his income on his mortgage payment. He has saved up $35,000 for a down payment. Nick is considering the following loan option: 20% down, 30 year at a fixed rate of 6.25%. What modification can be made to this loan to make it a viable option, given Nick’s situation?a.Change to a 15 year fixed loanb.Change the interest to 6%c.Change the down payment to 18% downd.None. This is a viable option for Nick.

Theresa is buying a condo that costs $127,500. She has $8,300 in savings and earns $3,200 a month. Theresa would like to spend no more than 20% of her income on her mortgage payment. Which loan option would you recommend to Theresa?a.30 year fixed, 6.5% down at a fixed rate of 5%b.30 year FHA, 3.5% down at a fixed rate of 6.5%c.30 year fixed, 5% down at a fixed rate of 6.25%d.30 year fixed, 10% down at a fixed rate of 5.75%

Verona goes to a business that offers tax refund anticipation loans because she really wants to get her money right now and not wait. They calculate her refund to be $985 and charge her $130 in fees for the loan. If the term on her loan is 15 days, what is the annual percentage rate on her loan?

Julio just bought a $267,900 house. He had a 20 year mortgage with a fixed rate of 5.875%. Julio’s monthly payments are $1,558.09. What percent of the purchase price was Julio’s down payment?a.13%b.15%c.18%d.20%

Jolene is graduating from high school in May. She received this offer from a university. Financial Analysis for UniversityCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$9,800$11,000Room & BoardWork-Study$12,500$5,000Which statements about the offer are true? Check all that apply.

Explain how the amount of a down payment affects your monthly mortgage payments.

1.

A consumer charges a $46.92 purchase on a credit card. The card has a daily interest rate of 0.039%. If the consumer pays off the balance at the end of 30 days, how much in interest will be paid for the purchase?

Holly plans to attend community college next year. Her expenses are only $1,200 because her parents are paying the rest. Holly earned a $750 scholarship. How much will she need to pay from her savings?

Which describes the difference between a personal loan and a credit card?