Barney Fletcher Math Loans Questions and
Correct Answers (Verified Answers) | Latest
Update 2026/27 | Graded A+
Bob and Carol are buying a home for $180,000 and putting up a down payment of
20%. They have to pay 2 discount points. What will be the amount paid for the
discount points?
Select one:
a. $3,600.
b. $3,250.
c. $3,000.
d. $2,880. - ANSWERS $180,000 price X 20% = $36,000 down payment.
$180,000 less $36,000 down payment = $144,000 loan amount. $144,000 X .02 =
$2,880 in discount points.
The correct answer is: $2,880.
What is the current balance of a 7.5% loan if this month's interest charge is
$786.97?t - ANSWERS $786.97 X 12 = $9,443.64 annualized interest.
$9,443.64 divided by .075 = $125,915 (rounded).
The correct answer is: $125,915.
Use the amortization table to solve this problem. We recommend writing this one
out manually to get a better visual. A new row begins after each vertical bar (|),
and a comma separates each cell. Per $1,000 of loan amount: |Rate, 15 Years, 20
Years, 25 Years, 30 Years |9%, 10.15, 9.00, 8.40, 8.05 |9.5%, 10.45, 9.33, 8.74, 8.41
|10%, 10.75, 9.66, 9.09, 8.78|. A couple can qualify for a monthly loan payment of
$1,200 (P&I). In addition to closing costs, they will make a $10,000 down payment.
, If lenders are offering 20-year loans at 9.5%, what is the maximum amount that
they can spend on a house? (To the nearest $100) - ANSWERS Using the table,
20-year loans at 9.5% require $9.33 per $1,000. $1,200 (monthly) / $9.33 x $1,000
= $128,617 loan amount. $128,617 loan + $10,000 down = $138,617 purchase
price, which would be rounded down to $138,600.
The correct answer is: $138,600
If a homebuyer took out a 30-year $150,000 fixed rate loan and the monthly
principal and interest payment was $760.03. If the first monthly payment reduces
the principal balance by $197.80, what is the interest rate of the loan?
Select - ANSWERS If the first payment reduced the principal balance by
$197.80, the first month's interest payment must have been $562.50, which is the
$760.03 less the $197.80 principal payment. First multiply the monthly interest
payment times 12 to get the annualized payment: $562.50 X 12 = $6,750. Now
divide the annualized interest by the loan amount to determine the interest rate.
$6,750 divided by $150,000 = .045 = 4.5%.
The correct answer is: 4.5%.
A homebuyer took out a $350,000 30-year fixed rate loan at 4.5% interest with a
monthly payment of $1,773.40. After making two monthly payments the principal
balance of the loan will have been reduced by a total of: - ANSWERS First
month's payment: $350,000 X .045 = $15,750 annualized interest. $15,750 divided
by 12 = $1,312.50 first month's interest. $1,773.40 less $1,312.50 interest =
$460.90 first month's principal reduction. $350,000 less $460.90 = $349,539.10
remaining balance. Second month's payment: $349,539.10 X .045 = $15,729.30
annualized interest. $15,729.30 divided by 12 = $1,310.77 second month's
interest. $1,773.40 less $1,310.77 = $462.63 second months principal reduction.
$460.90 + $462.63 = $923.63 total principal reduction after 2 payments.
The correct answer is: $923.53.
Correct Answers (Verified Answers) | Latest
Update 2026/27 | Graded A+
Bob and Carol are buying a home for $180,000 and putting up a down payment of
20%. They have to pay 2 discount points. What will be the amount paid for the
discount points?
Select one:
a. $3,600.
b. $3,250.
c. $3,000.
d. $2,880. - ANSWERS $180,000 price X 20% = $36,000 down payment.
$180,000 less $36,000 down payment = $144,000 loan amount. $144,000 X .02 =
$2,880 in discount points.
The correct answer is: $2,880.
What is the current balance of a 7.5% loan if this month's interest charge is
$786.97?t - ANSWERS $786.97 X 12 = $9,443.64 annualized interest.
$9,443.64 divided by .075 = $125,915 (rounded).
The correct answer is: $125,915.
Use the amortization table to solve this problem. We recommend writing this one
out manually to get a better visual. A new row begins after each vertical bar (|),
and a comma separates each cell. Per $1,000 of loan amount: |Rate, 15 Years, 20
Years, 25 Years, 30 Years |9%, 10.15, 9.00, 8.40, 8.05 |9.5%, 10.45, 9.33, 8.74, 8.41
|10%, 10.75, 9.66, 9.09, 8.78|. A couple can qualify for a monthly loan payment of
$1,200 (P&I). In addition to closing costs, they will make a $10,000 down payment.
, If lenders are offering 20-year loans at 9.5%, what is the maximum amount that
they can spend on a house? (To the nearest $100) - ANSWERS Using the table,
20-year loans at 9.5% require $9.33 per $1,000. $1,200 (monthly) / $9.33 x $1,000
= $128,617 loan amount. $128,617 loan + $10,000 down = $138,617 purchase
price, which would be rounded down to $138,600.
The correct answer is: $138,600
If a homebuyer took out a 30-year $150,000 fixed rate loan and the monthly
principal and interest payment was $760.03. If the first monthly payment reduces
the principal balance by $197.80, what is the interest rate of the loan?
Select - ANSWERS If the first payment reduced the principal balance by
$197.80, the first month's interest payment must have been $562.50, which is the
$760.03 less the $197.80 principal payment. First multiply the monthly interest
payment times 12 to get the annualized payment: $562.50 X 12 = $6,750. Now
divide the annualized interest by the loan amount to determine the interest rate.
$6,750 divided by $150,000 = .045 = 4.5%.
The correct answer is: 4.5%.
A homebuyer took out a $350,000 30-year fixed rate loan at 4.5% interest with a
monthly payment of $1,773.40. After making two monthly payments the principal
balance of the loan will have been reduced by a total of: - ANSWERS First
month's payment: $350,000 X .045 = $15,750 annualized interest. $15,750 divided
by 12 = $1,312.50 first month's interest. $1,773.40 less $1,312.50 interest =
$460.90 first month's principal reduction. $350,000 less $460.90 = $349,539.10
remaining balance. Second month's payment: $349,539.10 X .045 = $15,729.30
annualized interest. $15,729.30 divided by 12 = $1,310.77 second month's
interest. $1,773.40 less $1,310.77 = $462.63 second months principal reduction.
$460.90 + $462.63 = $923.63 total principal reduction after 2 payments.
The correct answer is: $923.53.
