How much would the buyer have to deposit today into an account that earns 4% interest, compounded quarterly to have enough saved for the total closing costs in 5 years? | Quick Homework Help
| GCMII: Final Examination
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STUDENT NAME:
______________________________
DATE: December 6, 2016 Attach all worksheets
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PART I: PERSONAL FINANCE: Credit Cards 35 total points
- A credit card issuer calculates interest using the average daily balance method. The monthly interest rate is 2% of the average daily balance. The following transactions occurred during the September 1st September 30th billing period:
| Transaction Description
|
Transaction Amount | |
| Previous balance:
|
$3,800 | |
| September 1
|
Billing date | |
| September 5 Payment
|
$800.00 credit | |
| September 9 Charge: Gas
|
$ 40.00 | |
| September 19 Charge: Clothing
|
$160.00 | |
| September 27 Charge: Airline ticket
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$200.00 | |
| September 30
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End of billing period | |
| Payment Due Date:
|
October 9th | |
| a. Find the average daily balance for the billing period. Round to the nearest cent. | $
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| b. Find the interest to be paid on October 1st, the next billing date. Round to the nearest cent. | $
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| c. Find the balance due on October 1st.
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$
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| d. What is the minimum monthly payment due by October 9th?
This credit card requires a $10 minimum monthly payment if the balance due at the end of the billing period is less than $360. Otherwise, the minimum monthly payment is 1/36 of the balance due at the end of the billing period, rounded up to the nearest whole dollar. |
$ | |
| e. Given the rate of this credit card, how much of the minimum monthly payment will go towards interest given to the bank? | $
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| f. Given the rate of this credit card, how much of the minimum monthly payment will go to towards reducing the balance?
|
$ | |
| g. You decide to pay off the balance over four years. If there are no further purchases charged to the card, how much must you pay each month? | $ | |
PART II: PERSONAL FINANCE: Mortgages 40 total points
Round all answers to the nearest dollar.
- The price of a home is $120,000. The bank requires a 15% down payment. The buyer is offered two mortgage options:
- Option A: 30-year fixed at 7% with closing costs of $2,000 and one point
- Option B: 30-year fixed at 6.5% with closing costs of $1,500 and two points
Which mortgage loan has the greater total costs (closing costs + the amount paid for points + total cost of interest)? By how much?
Answer: Option A [ ] Option B [ ]
Difference in total costs: $_______________________
| OPTION A
30-year fixed at 7% with closing costs of $2,000 + 1 point |
OPTION B
30-year fixed at 6.5% with closing costs of $1,500 + 2 points |
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| Down payment:
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| Closing Costs:
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| Points to be paid:
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| Total Cash to Close:
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| Loan Amount:
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| Monthly Mortgage Amount:
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| Total Amount Paid:
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| Total Interest Paid:
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| Total Cost of Each Option:
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- Using the financial industrys rule of thumb for monthly mortgage limits set at 28% of gross monthly income how much would the buyer have to earn yearly to be able to afford the option chosen in Part I?
Answer: $______________________________
- How much would the buyer have to deposit today into an account that earns 4% interest, compounded quarterly to have enough saved for the total closing costs in 5 years?
Answer $______________________________
PART III: STATISTICS 25 total points
- Teenage Drug Use
| Country | Czech Rep | Denmark | UK | Finland | Ireland | Italy | N. Ireland | Norway | Portugal | Scotland | US |
| (x): %
Marijuana |
22 | 17 | 40 | 5 | 37 | 19 | 23 | 6 | 7 | 53 | 34 |
| (y): % Other Illegal Drugs | 4 | 3 | 21 | 1 | 16 | 8 | 14 | 3 | 3 | 31 | 24 |
- Make a scatter plot for the given data.
- State the correlation between the two variables: ¨ Pos ¨ Neg ¨ No Correlation
- Determine the correlation coefficient, rounded to two decimal places, between the percentage of people in a country who are literate and the percentage who are undernourished.
Answer: _________________
- Find the equation of the regression line for the percentage of teenagers who have used marijuana and the percentage who have used other drugs. Round m and b to two decimal places.
y = mx + b Answer: _________________
- What percentage of teenagers, to the nearest percent, can we anticipate using illegal drugs other than marijuana in a country where 10% of teenagers have used marijuana?
Answer: __________________
PART IV: EXTRA CREDIT 20 total points
EC1: How much more would you earn in the first investment than in the second investment? Please round answers to the nearest dollar.
$50,000 invested for 30 years at 10% compounded annually Amt. earned: $______________
$50,000 invested for 30 years at 5% compounded monthly Amt. earned: $______________
How much more will be earned in the first investment? Difference: $______________
EC2 How much money should be deposited today in an account that earns 9.5% compounded monthly so that it will accumulate to $10,000 in three years?
Amt. deposited: $___________
EC3: License plates in a particular state display 4 letters followed by 2 numbers. How many different license plates can be manufactured for this state?
Answer: _________________________
EC4: A group consists of four men and five women. Three people are selected to attend a conference. How many ways can three people be selected from this group of nine?
Answer: _________________________
