Reference no: EM132957054
Questions -
Q1. Brooke bought a condominium for $413,600. She made a 9% down payment and financed the remaining amount using a 25-year fixed-rate mortgage at 5.2%. The monthly payment is $2,244. Brooke will pay for one discount point, a 0.75% origination fee, the brokerage fee, state documentary taxes on the deed and the mortgage, and the intangible tax.
Discount points equal 1% of the mortgage amount.
Documentary stamp tax on deed is $0.70 per $100 or portion thereof.
Documentary stamp tax on mortgage is $0.35 per $100 or portion thereof.
Mortgage broker fee is $175 plus 5% of the mortgage amount.
Intangible tax is 0.2% of the mortgage amount.
What is the total amount of the principal, interest, down payment, and fees described for Brooke's condominium?
a. $743,687.00
b. $807,569.73
c. $481,369.73
d. $740,969.73
Q2. Madeline and Jonathan want to purchase a home in five years. They will contribute $630 every six months to a savings account with 3.05% interest, compounded monthly. What is the future value of this investment, when Madeline and Jonathan need to make a down payment?
A. $1,494.40
B. $6,796.45
C. $6,813.72
D. $40,778.67
Q3. Madeline and Jonathan want to purchase a home in six years. They will contribute $540 every six months to a savings account with 5.25% interest, compounded quarterly. What is the future value of this investment, when Madeline and Jonathan need to make a down payment?
A. $7,559.06
B. $15,118.11
C. $7,502.45
D. $7,658.27
Q4. Annually, Triton deposits $1,500 into an interest-bearing account to save for a down payment on a house. The interest rate on the account is 4.19% compounding monthly. What is the present value of the investment if Triton purchases a house in 17 years?
A. $431,094.27
B. $18,217.53
C. $18,281.14
D. $218,610.36
Q5. List the following stocks and bonds in order from lowest default risk to highest default risk:
A corporate bond in a 150-year old firm with good business practices
A US Treasury bond
A bond in an unstable foreign government
A. US bond, foreign government bond, corporate bond
B. US bond, corporate bond, foreign government bond
C. Corporate bond, US bond, foreign government bond
D. Corporate bond, foreign government bond, US bond
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