Sem 2 Exam Review

Tammy’s financial advisor suggests that she spends no more than 24% of her gross monthly income on rent. If she determines that the amount of rent that should be paid is $1,375 per month, what is her annual salary?

• $68,750

• $70,890

• $73,195

• $78,655

The Cash family took out a $150,000, 25-year mortgage at an APR of 2.7%. The monthly payment was $688.13.

            A. How much will they pay in total for the mortgage over the 25 years?

            B. What will their total interest charges be after 25 years?

• A.      $206,439

  B. $56,439

• A.      $206,439

  B. $52,872

• A.      $182,439

  B. $37,873

• A.      $182,439

  B. $50,786

Bill is in the market to buy a house and was approved for a 30-year loan of $389,000 at an interest rate of 6.25%. He found a house but noticed that the mortgage payment was going to be too high due to the interest rate, so he decided to spend $10,000 to decrease the rate by 0.5%. What would his new monthly payment be?

• $2,270.10

• $2,234.74

• $2,781.74

• $2,071.74

Stan is closing on a $300,000 home. He made a 12% down payment and is borrowing the rest. If he can expect the range of closing costs to be around 2% to 6%, what is the approximate range of costs that he might expect to pay at the closing, including the down payment?

• $42,000-$54,000

• $38,000-$42,000

• $40,000-$52,000

• $36,000-$46,000

Larry, Curly, and Moe invested in a partnership worth $840,000 in the ratio of 2:4:6, respectively. How much does the partner that invested the least contribute?

• $140,000

• $110,000

• $120,000

• $130,000

On August 11, Snippet Incorporated closed at $14,311 per share. One year earlier, one share closed at $15,298. What was an approximate 1-year percent change? Round to the nearest tenth of a percent.

• 6.9%

• 6.3%

• 6.5%

• 6.7%

Luis bought 100 shares of stock for $6.18 per share last year. He paid his broker a 1% commission. He sold the stock this week for $4.57 per share and paid his broker a $25 flat fee. What were Luis’s net proceeds?

 

• -$192.18

• -$206.36

• -$187.36

• -$164.38

ABM Services paid a $3.15 annual dividend on a day it closed at a price of $94 per share. What was the percent yield, rounded to the nearest hundredth of a percent?

• 3.35%

• 3.21%

• 2.98%

• 4.23%

• A $40

  B $576,000

• A $40

  B $526,000

• A $30

  B $576,000

• A $30

  B $526,000

A new Android cell phone has a markup of 165% and sells for $740.00. What is the wholesale price of the cell phone?

• $279.24

• $267.65

• $253.89

• $301.78