MGF 1107 Miami Dade College MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Similar documents
Name Date MATH REVIEW 2. SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

FINANCIAL MATHEMATICS

Chapter 3. Compound interest

Chapter 5 Time Value of Money

1 The Power of Compounding

SIMPLE INTEREST, COMPOUND INTEREST INCLUDING ANNUITY

Section 3.3 Exercises Part A Simplify the following. 1. (3m 2 ) 5 2. x 7 x 11

CHAPTER 2 PRICING OF BONDS

Date: Practice Test 6: Compound Interest

Calculation of the Annual Equivalent Rate (AER)

2. The Time Value of Money

Chapter 4: Time Value of Money

1 Savings Plans and Investments

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

0.07. i PV Qa Q Q i n. Chapter 3, Section 2

APPLICATION OF GEOMETRIC SEQUENCES AND SERIES: COMPOUND INTEREST AND ANNUITIES

MATH CONTEMPORARY MATH FINAL REVIEW 1 L F Thomas - Instructor

Chapter Four Learning Objectives Valuing Monetary Payments Now and in the Future

2. Find the annual percentage yield (APY), to the nearest hundredth of a %, for an account with an APR of 12% with daily compounding.

Course FM Practice Exam 1 Solutions

NPTEL DEPARTMENT OF INDUSTRIAL AND MANAGEMENT ENGINEERING IIT KANPUR QUANTITATIVE FINANCE END-TERM EXAMINATION (2015 JULY-AUG ONLINE COURSE)

1 + r. k=1. (1 + r) k = A r 1

Where a business has two competing investment opportunities the one with the higher NPV should be selected.

STRAND: FINANCE. Unit 3 Loans and Mortgages TEXT. Contents. Section. 3.1 Annual Percentage Rate (APR) 3.2 APR for Repayment of Loans

Class Sessions 2, 3, and 4: The Time Value of Money

Using Math to Understand Our World Project 5 Building Up Savings And Debt

Fixed Income Securities


2013/4/9. Topics Covered. Principles of Corporate Finance. Time Value of Money. Time Value of Money. Future Value

Solutions to Interest Theory Sample Questions

Asset Valuation with known cash flows. Annuities and Perpetuities care loan, saving for retirement, mortgage

Annual compounding, revisited

Single-Payment Factors (P/F, F/P) Single-Payment Factors (P/F, F/P) Single-Payment Factors (P/F, F/P)

MS-E2114 Investment Science Exercise 2/2016, Solutions

Current Year Income Assessment Form 2017/18

Chapter Four 1/15/2018. Learning Objectives. The Meaning of Interest Rates Future Value, Present Value, and Interest Rates Chapter 4, Part 1.

CAPITAL PROJECT SCREENING AND SELECTION

Course FM/2 Practice Exam 1 Solutions

Chapter 5: Sequences and Series

Fixed Income Securities

Math of Finance Math 111: College Algebra Academic Systems

SOCIETY OF ACTUARIES FINANCIAL MATHEMATICS EXAM FM SAMPLE SOLUTIONS

Basic formula for confidence intervals. Formulas for estimating population variance Normal Uniform Proportion

The self-assessment will test the following six major areas, relevant to studies in the Real Estate Division's credit-based courses:

MATH : EXAM 2 REVIEW. A = P 1 + AP R ) ny

Helping you reduce your family s tax burden

Understanding Financial Management: A Practical Guide Problems and Answers

Class Notes for Managerial Finance

First determine the payments under the payment system

We learned: $100 cash today is preferred over $100 a year from now

for a secure Retirement Foundation Gold (ICC11 IDX3)* *Form number and availability may vary by state.

Osborne Books Update. Financial Statements of Limited Companies Tutorial

Introduction to Financial Derivatives

1 Basic Growth Models

MA Lesson 11 Section 1.3. Solving Applied Problems with Linear Equations of one Variable

Financial Math Lesson #2

Chapter 11 Appendices: Review of Topics from Foundations in Finance and Tables

Name Date. Key Math Concepts

Chapter Six. Bond Prices 1/15/2018. Chapter 4, Part 2 Bonds, Bond Prices, Interest Rates and Holding Period Return.

T4032-MB, Payroll Deductions Tables CPP, EI, and income tax deductions Manitoba Effective January 1, 2016

Subject CT5 Contingencies Core Technical. Syllabus. for the 2011 Examinations. The Faculty of Actuaries and Institute of Actuaries.

T4032-ON, Payroll Deductions Tables CPP, EI, and income tax deductions Ontario Effective January 1, 2016

ANNUAL ACTUAL INTEREST RATE CALCULATION FORMULA AND SAMPLES

Institute of Actuaries of India Subject CT5 General Insurance, Life and Health Contingencies

T4032-BC, Payroll Deductions Tables CPP, EI, and income tax deductions British Columbia Effective January 1, 2016

Life Cycle Cost Analysis. Selection of Heating Equipment. By Henry Manczyk, CPE, CEM

Subject CT1 Financial Mathematics Core Technical Syllabus

Summary of Benefits RRD

Lecture 2. Tuesday Feb 3 rd. Time Value of Money 1

Lecture 16 Investment, Time, and Risk (Basic issues in Finance)

REINSURANCE ALLOCATING RISK

ENGINEERING ECONOMICS

The Time Value of Money

Mark to Market Procedures (06, 2017)

(Zip Code) OR. (State)

Cost-benefit analysis of plasma technologies

TUSCULUM COLLEGE. Group Number:

physicsandmathstutor.com

Driver s. 1st Gear: Determine your asset allocation strategy.

2012/13. Assessment of financial circumstances. For parents and partners of students

Highest Daily Lifetime Seven SM Spousal Highest Daily Lifetime Seven SM

CAPITALIZATION (PREVENTION) OF PAYMENT PAYMENTS WITH PERIOD OF DIFFERENT MATURITY FROM THE PERIOD OF PAYMENTS

living well in retirement Adjusting Your Annuity Income Your Payment Flexibilities

ARBORREALTYTRUST.COM. Arbor Realty Trust Investor Presenta3on June 2017

Your guide to Protection Trusts

The Time Value of Money in Financial Management

FEHB. Health Benefits Coverage for Noncareer Employees

9 months 1 year = 0.75 years 1 12 months

Economic Analysis and Optimization

Bond Valuation. Structure of fixed income securities. Coupon Bonds. The U.S. government issues bonds

Pension Annuity. Policy Conditions Document reference: PPAS1(6) This is an important document. Please keep it in a safe place.

Methodology on setting the booking prices Project Development and expansion of Bulgartransgaz EAD gas transmission system

Client Guide. managed by CI Investments Inc. issued by Sun Life Assurance Company of Canada

Life Products Bulletin

TIME VALUE OF MONEY 6.1 TIME VALUE OF MONEY

Dr. Maddah ENMG 602 Intro to Financial Eng g 01/18/10. Fixed-Income Securities (2) (Chapter 3, Luenberger)

LESSON #66 - SEQUENCES COMMON CORE ALGEBRA II

PAYG instalments how to complete your activity statement

City of Johannesburg Pension Fund

Depreciation is the loss in value over time the property is being used.

Transcription:

Review Persoal Fiace Name MGF 1107 Miami Dade College MULTIPLE CHOICE. Choose the oe alterative that best completes the stateme or aswers the questio. 1) What umber is 32% of 48? 1) A) 1536 B) 153.6 C) 15.36 D) 1.536 2) 21 is 6% of what umber? 2) A) 126 B) 350 C) 35 D) 3500 3) 0.22 is 22% of what umber? 3) A) 1 B) 0.1 C) 0.0484 D) 0.01 4) Jeas with a origial price of $58 are o sale at 25% off. What is the sale price of the jeas? (Roud to the earest ce, if ecessary.) A) $56.55 B) $72.50 C) $14.50 D) $43.50 5) A dress regularly sells for $117. The sale price is $95. Fid the perce decrease of the sale price from the regular price. A) 23.2% B) 18.8% C) 81.2% D) 431.8% Fid the gross icome, the adjusted gross icome, ad the taxable icome. 6) A taxpayer eared wages of $65,100, received $840 i ierest from a savigs accou, ad coributed $2300 to a tax-deferred retireme pla. He was eitled to a persoal exemptio of $3500 ad had deductios totalig $5680. A) $68,240; $64,740; $59,060 B) $65,940; $63,640; $54,460 C) $68,240; $64,740; $60,140 D) $65,940; $63,640; $60,140 4) 5) 6) Use the 2012 FICA tax rates i the table below to solve the problem. 7) If you are ot self-employed ad ear $128,000, what are your FICA taxes? 7) A) $2612 B) $15,152 C) $6476 D) $7232 1

The pricipal represes a amou of moey deposited i a savigs accou subject to compoud ierest at the give rate. Fid how much moey will be i the accou after the give umber of years (Assume 360 days i a year.), ad how much ierest was eared. A = P A A = Pert Y = 8) Pricipal: $9000 Rate: 4% Compouded: aually Time: 3 years A) amou i accou: $28,080.00; ierest eared: $19,080.00 B) amou i accou: $1,125,000.00; ierest eared: $1,116,000.00 C) amou i accou: $10,123.78; ierest eared: $1123.78 D) amou i accou: $10,146.78; ierest eared: $1146.78 9) Pricipal: $8000 Rate: 4% Compouded: semiaually Time: 5 years A) amou i accou: $9751.96; ierest eared: $1751.96 B) amou i accou: $8832.65; ierest eared: $832.65 C) amou i accou: $9733.22; ierest eared: $1733.22 D) amou i accou: $11,841.95; ierest eared: $3841.95 10) If you placed $1 io a accou that paid ierest at a rate of 5% ad compouded the ierest mohly, how much would that accou be worth i 300 years? A) $1,584,357.24 B) $1793.99 C) $3,168,714.47 D) $3.48 11) A mother ivests $9000 i a bak accou at the time of her daughter's birth. The ierest is compouded quarterly at a rate of 7%. What will be the value of the daughter's accou o her tweieth birthday, assumig o other deposits or withdrawals are made durig this period? A) $2524.03 B) $50,400.00 C) $10,096.10 D) $36,057.53 8) 9) 10) 11) A = P A A = Pe rt Y = 12) How much moey should be deposited today i a accou that ears 6% compouded semiaually so that it will accumulate to $9000 i 2 years? A) $7996.38 B) $10,129.58 C) $8009.97 D) $1003.62 12) 2

Fid the value of the auity ad the ierest. Roud to the earest dollar. A = P[(1 + r) t ] r A = P r A r 13) Periodic Deposit: $100 at the ed of each year Rate: 4% compouded aually Time: 9 years A) $921; $21 B) $1058; $158 C) $3558; $2658 D) $342; $558 14) Periodic Deposit: $1000 at the ed of each year Rate: 6.5% compouded aually Time: 13 years A) $19,500; $6500 B) $17,371; $4371 C) $34,884; $21,884 D) $3276; $9724 Provide a appropriate respose. 15) True or False? Ivestig i stocks ad bods is risky because it is possible to lose all or part of your pricipal. A) True B) False 16) True or False? People who buy bods ow a share of a compay, same as whe they buy stock i the compay. A) True B) False 13) 14) 15) 16) 3

P r Use PMT = 1 + r - to determie the regular payme amou, rouded to the earest dollar. 17) The price of a home is $250,000. The bak requires a 15% dow payme ad two pois at the time of closig. The cost of the home is fiaced with a 20-year fixed-rate mortgage at 6.5%. a. Fid the required dow payme. b. Fid the amou of the mortgage. c. How much must be paid for the two pois at closig? d. Fid the total cost of ierest over 20 years, to the earest dollar. A) a. dow payme: $37,500 b. amou of mortgage: $212,500 c. pois paid at closig: $5000 d. total cost of ierest over 20 years: $167,742 B) a. dow payme: $37,500 b. amou of mortgage: $212,500 c. pois paid at closig: $5000 d. total cost of ierest over 20 years: $130,242 C) a. dow payme: $37,500 b. amou of mortgage: $212,500 c. pois paid at closig: $4250 d. total cost of ierest over 20 years: $380,242 D) a. dow payme: $37,500 b. amou of mortgage: $212,500 c. pois paid at closig: $4250 d. total cost of ierest over 20 years: $167,742 18) The price of a home is $330,000. The bak requires a 5% dow payme. After the dow payme, the balace is fiaced with a 20-year fixed-rate mortgage at 8%. Determie the mohly mortgage payme (excludig escrowed taxes ad isurace) to the earest dollar. A) $2637 B) $2722 C) $2610 D) $2622 19) I terms of payig less i ierest over the full term of the mortgage, which is more ecoomical for a $200,000 mortgage : 30-year fixed at 7.00% or 20-year fixed at 6.50%? A) They are the same. B) The 20-year fixed rate at at 6.50% is more ecoomical. C) The 30-year fixed rate at at 7.00% is more ecoomical. 17) 18) 19) Use the followig advice from most fiacial advisors to solve the problem. Sped o more tha 28% of your gross mohly icome for your mortgage payme. Sped o more tha 36% of your gross mohly icome for your total mohly debt. Roud all calculatios to the earest dollar, if ecessary. 20) Suppose that your gross aual icome is $96,000. (a) What is the maximum amou you should sped each moh o a mortgage payme? (b) What is the maximum amou you should sped each moh for total credit obligatios? (c) If your mohly mortgage payme is 65% of the maximum amou you ca afford, what is the maximum amou you should sped each moh for all other debt? A) (a) $2240; (b) $2880; (c) $368 B) (a) $26,880; (b) $34,560; (c) $17,088 C) (a) $2240; (b) $2880; (c) $1424 D) (a) $2240; (b) $2880; (c) $1456 20) 4

1) C 2) B 3) A 4) D 5) B 6) B 7) C 8) C 9) A 10) C 11) D 12) A 13) B 14) A 15) A 16) B 17) D 18) D 19) B 20) C