MDFL Chapter 7

Ricardo took out a $326,000, 30-year mortgage at an APR of 5.66%. Carlo took out a $341,000, 25-year mortgage at an APR of 5.35%. Which of the following statements is NOT true?

• Ricardo's monthly payment is approximately $1,884
• Carlo's monthly payment is approximately $1,964
• Ricardo’s total interest charges after 30 years are about $352,000
• Carlo’s total interest charges after 25 years are about $278,000

JJ just signed a lease on a rental apartment. The current rent is $1,810 per month, and they estimate a 5.4% increase each year. How much money will JJ pay in the next 4 years for rental expenses?

• $94,174
• $91,572
• $86,880
• $91,635

The Jacksons have an adjusted gross income of $157,234. They are looking at a new house that would have a monthly mortgage payment of $1,800. Their annual property taxes would be $8,150 and their semi-annual homeowner’s premium would be $672. They have a $412 per month car loan and their average monthly credit card bill is $356. Their front-end ratio is ______ and their back end ratio is _____.

• 25.6% and 19.8%
• 13.7% and 19.6%
• 19.4% and 19.6%
• 19.8% and 25.6%

Claire has a gross bimonthly (every other month) income of $4,750. She pays 13% in federal and state taxes, puts asides 8% of her income to pay off her school loan, and puts 4.5% of her income for savings. She is considering an apartment that will rent for $470 per month. Does this monthly rental fee fall within the recommended 25-30% housing expense range?

• No, the monthly rental fee is above 30% of her income
• No, the monthly rental fee is below 25% of her income
• Yes, the monthly rental fee is about 13% of her income
• Yes, the monthly rental fee is about 27% of her income

y=1.241x+604.77 The square footage and monthly rental price of 24 similar two-bedroom apartments in Valencia Hills yield the following linear regression equation: where x represents the square footage of the apartment and y represents the monthly rental price. What would the monthly rent for an apartment that has 1,760 square feet be?

• $2,184.16
• $1,579.39
• $2,788.93
• $2,364.77

Nicole just rented an apartment for $820 a month. She was told that the rent will increase 4.2% each year. Which one is the formula to calculate how much her rent will be the 7th year (x=7)?

• R(x)=820(0.042x)
• R(x)=820(0.042)x
• R(x)=820(1+0.042)x−1
• R(x)=820(1+4.2)x−1

Joann is taking out a $236,000 mortgage. The bank offers an APR of 5.21%. She wants to compare monthly payments on 20- and 30-year mortgages. What is the difference in the monthly payments for these two mortgages? Round your answer to the nearest dollar.

• $288
• $158
• $296
• $188

Which of the following statements is NOT true?

• Barbara pays $250
• Chris ends up with nothing.
• Barbara gets $4,675 from the insurance company.
• Christ gets $3,800 from the insurance company.

Determine the hourly rate.

• $70 for loading and unloading and $90 for packing and unpacking.
• $50 for loading and unloading and $40 for packing and unpacking.
• $90 for loading and unloading and $70 for packing and unpacking.
• $40 for loading and unloading and $50 for packing and unpacking.

Ivonne has a gross monthly income of $5,800. She pays 16% in federal and state taxes, puts aside 12% of her income to pay off her school loan, and puts 5% of her income aside for savings. She is considering an apartment that will rent for $1,700 per month. Does this monthly rental fee fall within the recommended 25-30% housing expense range? Based on her expenses, can she make the monthly payments? How much will remain after she pays for the rent and other expenses?

• Yes, yes, $2,186
• no, no, $2,186
• Yes, no, $1,862
• yes, yes $1,862