MGF 1107 Exam Questions and Answers Already Passed
Simple interest - Answers What is the future value for a loan of $788 at 10.78% simple interest over a
period of 5 years?
Compound interest - Answers How much money is in a savings account after 6 years if the principle is
$155 and the nominal annual interest rate is 2.13% compounded monthly?
Compound interest (future) - Answers Suppose that after 6 years you want to have $2600 in an account
that pays 4.40% compounded monthly. How much should you deposit now in order to achieve your
goal?
APY - Answers What is the annual percentage yield if the nominal annual interest rate is 4.72%
compounded monthly?
Daily interest rate - Answers Find the daily interest rate if the annual interest rate for a credit card is
18.45%.
Finance charge - Answers Suppose a credit card company determines the finance charge by calculating
the simple interest on the average daily balance using the daily interest rate. If your average daily
balance during a 30-day billing cycle was $564 and the annual interest rate is 9.71%, what is your finance
charge?
Monthly loan payment - Answers Find the monthly payment for a 5 year auto loan where the amount
borrowed is $17000 and the nominal annual interest rate is 6.63% compounded monthly.
Total interest - Answers Find the total amount of interest paid over the life of a 5 year auto loan where
the amount borrowed is $22800 and the monthly payment is $460.88. The answers have been rounded.
Choose the closest answer.
Max house expense - Answers According to the guidelines in our text, find the maximum monthly
housing expenses for a household with an annual gross income of $47823.
expenses for a household with an annual gross income of $47823.
Max house price - Answers According to the home affordability guidelines in our text, find the maximum
home price for a household with an annual gross income of $35811.
Max house price + payment - Answers A home buyer has saved $11000 for down payment on a home.
What is the maximum price of a home this buyer can afford if the lender requires a 12.5% down
payment?
Monthly payment + escrow - Answers Suppose that for a 30 year home mortgage the amount borrowed
is $286000 and the interest rate is 6.94%. The assessed value of the home is $263690 .
The annual cost of insurance is $1848 and the property tax rate is 1.34%. Find the monthly payment,
including escrow for taxes and insurance.
Simple interest - Answers What is the future value for a loan of $788 at 10.78% simple interest over a
period of 5 years?
Compound interest - Answers How much money is in a savings account after 6 years if the principle is
$155 and the nominal annual interest rate is 2.13% compounded monthly?
Compound interest (future) - Answers Suppose that after 6 years you want to have $2600 in an account
that pays 4.40% compounded monthly. How much should you deposit now in order to achieve your
goal?
APY - Answers What is the annual percentage yield if the nominal annual interest rate is 4.72%
compounded monthly?
Daily interest rate - Answers Find the daily interest rate if the annual interest rate for a credit card is
18.45%.
Finance charge - Answers Suppose a credit card company determines the finance charge by calculating
the simple interest on the average daily balance using the daily interest rate. If your average daily
balance during a 30-day billing cycle was $564 and the annual interest rate is 9.71%, what is your finance
charge?
Monthly loan payment - Answers Find the monthly payment for a 5 year auto loan where the amount
borrowed is $17000 and the nominal annual interest rate is 6.63% compounded monthly.
Total interest - Answers Find the total amount of interest paid over the life of a 5 year auto loan where
the amount borrowed is $22800 and the monthly payment is $460.88. The answers have been rounded.
Choose the closest answer.
Max house expense - Answers According to the guidelines in our text, find the maximum monthly
housing expenses for a household with an annual gross income of $47823.
expenses for a household with an annual gross income of $47823.
Max house price - Answers According to the home affordability guidelines in our text, find the maximum
home price for a household with an annual gross income of $35811.
Max house price + payment - Answers A home buyer has saved $11000 for down payment on a home.
What is the maximum price of a home this buyer can afford if the lender requires a 12.5% down
payment?
Monthly payment + escrow - Answers Suppose that for a 30 year home mortgage the amount borrowed
is $286000 and the interest rate is 6.94%. The assessed value of the home is $263690 .
The annual cost of insurance is $1848 and the property tax rate is 1.34%. Find the monthly payment,
including escrow for taxes and insurance.
