MF.A.1.2:HOME BUYING MATH

MF.A.1.2:HOME BUYING MATH

Assessment

Flashcard

Mathematics

11th Grade

Practice Problem

Hard

CCSS
RI.11-12.5, 8.EE.C.7B, RI.9-10.5

+6

Standards-aligned

Created by

Wayground Content

FREE Resource

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15 questions

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1.

FLASHCARD QUESTION

Front

What is a mortgage?

Back

A mortgage is a loan specifically used to purchase real estate, where the property itself serves as collateral for the loan.

Tags

CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5

2.

FLASHCARD QUESTION

Front

What does APR stand for in mortgage terms?

Back

APR stands for Annual Percentage Rate, which represents the yearly cost of borrowing, including interest and fees.

3.

FLASHCARD QUESTION

Front

How is a monthly mortgage payment calculated?

Back

Monthly mortgage payments are calculated using the loan amount, interest rate, and loan term, typically using the formula: M = P[r(1+r)^n] / [(1+r)^n – 1], where M is the total monthly mortgage payment, P is the loan principal, r is the monthly interest rate, and n is the number of payments.

4.

FLASHCARD QUESTION

Front

What is the significance of a down payment in home buying?

Back

A down payment is the initial amount paid upfront when purchasing a home, which reduces the loan amount and can affect the mortgage terms and monthly payments.

5.

FLASHCARD QUESTION

Front

What is the difference between fixed-rate and adjustable-rate mortgages?

Back

A fixed-rate mortgage has a constant interest rate throughout the loan term, while an adjustable-rate mortgage has an interest rate that may change periodically based on market conditions.

6.

FLASHCARD QUESTION

Front

What factors can affect the monthly mortgage payment?

Back

Factors include the loan amount, interest rate, loan term, property taxes, homeowner's insurance, and private mortgage insurance (PMI) if applicable.

7.

FLASHCARD QUESTION

Front

What is private mortgage insurance (PMI)?

Back

PMI is insurance that protects the lender if the borrower defaults on the loan, typically required when the down payment is less than 20%.

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