Loan Adjustments and Calculator Functions

Loan Adjustments and Calculator Functions

Assessment

Interactive Video

Mathematics

9th - 10th Grade

Hard

Created by

Thomas White

FREE Resource

The video tutorial explains how to calculate the new payment at the beginning of the next adjustment period. It covers determining the balance at the end of the first year, calculating the new interest rate based on the index rate and margin, and using a scientific calculator to perform the necessary calculations. The tutorial also demonstrates how to calculate the time left on the loan and the new payment amount, highlighting the increase in payment for the second adjustment period.

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16 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the purpose of the adjustment period in a loan?

To decrease the loan term

To adjust the interest rate and payments

To increase the loan amount

To change the loan type

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is the new interest rate determined?

By dividing the index rate by the margin

By subtracting the margin from the index rate

By adding the index rate and margin

By multiplying the index rate by the margin

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the index rate used in the calculation?

2.3%

11.5%

15%

99.2%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the margin added to the index rate?

1.5%

3.5%

4.2%

2.3%

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How many years are left on the loan after the first year?

21 years

20 years

19 years

18 years

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the new principal amount after the first adjustment?

835934.72

83593472

8359347.2

83593.472

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the first step in using the calculator for the denominator?

Multiply 12 by 19

Add 12 to 12115

Subtract 12 from 12115

Divide 12 by 12115

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