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hw5

Description

Use the information below to answer the questions.

Instructions

You have just graduated from ACME State with a degree in Diesel Technology.  Your new job takes you to Toledo, Ohio.  You are now earning $35,000 per year.  Your take home pya is 70% of that gross toal.  You are anxious to purchase a home.  You have the following monthly expenses:

 

            Food                                        $275

            Utilities                                   $145

            Phone                                      $75

            Medical                                   $30

            Insurance                                $130 (including auto, health and life)

            Clothing                                  $70

Student loan payment             $145

VISA payment                        $65

MasterCard Payment              $48

Car payment                           $211

Miscellaneous                        $100

 

Total                                       $_______

Multiple Attempts

This test allows 3 attempts. This is attempt number 1.

Force Completion

This test can be saved and resumed later.

 

QUESTION 1

1. First calculate your monthly take-home pay.  Next, add up the budgeted monthly expenses shown above.  How much remains for a monthly mortgage PITI payment (PITI = principal, interest, taxes, insurance)?

$1,622,67

$2,916.67

$747.67

$2,041.67

1 points   

QUESTION 2

1. Assume that taxes and insurance (T&I) amount to $70 per month.  How much remains to pay monthly mortgage principal and interest (P&I)?  (Hint:  Use your answer from the previous question)

$1,552.67

$795.67

$677.67

$1,971.67

1 points   

QUESTION 3

1. Using the answer to the above question calculate the size of the mortgage loan you could obtain.  Assume a 30-year loan at 7 percent annual interest.

$101,858.93 mortgage

$112,380.46

$119,494.52

$131,497.99

1 points   

QUESTION 4

1. Using the answer from the above question, and assuming you have 10 percent of the purchase price, what is the most you could pay for a home?

$126,666,67

$134,444.44

$113,176.59

$101,858.93

1 points   

QUESTION 5

1. Assuming you do not pay the mortgage off early, how much interest will you pay the lender over the life of the 30 year loan if you payment is $677.67 per month and the mortgage loan was for $107,460?

2.

$136,501.20

$134,587.94

$125,682.57

$140,520.60

1 points   

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hw4

Description

Use the following information to answer all of the questions.

Instructions

Scenario: 

Mortgage Loan = $150,000

Loan length = 30 years

Interest rate = 6% annually

Multiple Attempts

This test allows 3 attempts. This is attempt number 1.

Force Completion

This test can be saved and resumed later.

 

QUESTION 1

1. What will be the monthly mortgage payment?

2.

$899.33

$857.23

$908.17

$895.46

1 points   

QUESTION 2

1. Assuming you do not pay the loan off early, how much total interest will you pay the lender?

$176,880.48

$158,520.21

$173,758.80

$172,200.66

1 points   

QUESTION 3

1. If you decide to amortize the loan over 15 year, what will be your monthly payment?

2.

$1,214.42

$1,287.38

$1,265.79

$1,259.85

1 points   

QUESTION 4

1. Assume you select a 15-year mortgage with an interest rate of 7.5 percent.  What will your monthly payment be?  (mortgage loan is still $150,000)

$1,416

$1,391

$1,382

$1,317

1 points   

QUESTION 5

1. Assume you select a 15-year mortgage with an interest rate of 7.5 percent.  How much total interest will you pay to the lender?  (mortgage loan is still $150,000)

$98,760.300

$100,380.00

$87,060.92

$104,880.28

1 points   

hw3

QUESTION 1

1. If you purchased automobile liablilty coverage of 75/200/30, describe what each number means.

2.

a.

$75,000 liability coverage for property damage

$200,000 liability coverage per accident for bodily injury

$30,000 liability coverage per person for bodily injury

b.

$75,000 liability coverage per person for bodily injury

$200,000 liability coverage per accident for bodily injury

$30,000 liability coverage for property damage

c.

$750 liability coverage per person for bodily injury

$2,000 liability coverage per accident for bodily injury

$300 liability coverage for property damage

d.

$750 liability coverage for property damage

$2,000 liability coverage per accident for bodily injury

$300 liability coverage per person for bodily injury

1 points   

QUESTION 2

1. Assume you own a 1996 Chevrolet Impala which has a book value of $800.  The total annual premium for your auto insurance policy is $789.  The annual cost for collision coverage is $284 with a $500 deductible.  Liability coverage of 100/300/50 costs you $325 per year.  what is the annual cost per $1,000 of coverage for collision insurance?  What is the annual cost per $1,000 of coverage for liability insurance?

2.

a.

$568 is the collision cost per $1,000

$0.93 is the liability cost per $1,000

b.

$284 is the collision cost per $1,000

$325 is the liability cost per $1,000

c.

$3 is the collision cost per $1,000

$1 is the liability cost per $1,000

d.

$946.67 is the collision cost per $1,000

$0.93 is the liability cost per $1,000

2 points   

QUESTION 3

1. Assume you have an accident in which your 1996 Impala is totally destroyed, but you are not hurt.  ACME Insurance Co. (your insurance company) wrties you a check for the car.  What is the dollar amount of the check?

2.

a.

$1,000

b.

$800

c.

$500

d.

$300

1 points   

QUESTION 4

1. Assume you have a home which would cost $120,000 to replace.  You currently have the home insured for $85,000.  Last night a tornado damaged your home, causing an estimated $25,000 in damage.  How much will your insurance company pay for repairing the damage to your home?

2.

a.

$25,000

b.

$85,000

c.

$22,135

d.

$68,000

hw2

1. John and Kim are married, however, they did not have health insurance for any of 2015.  Their household income was $50,000.  What is the penalty they will have to pay – flat fee or percentage – what is the dollar amount?

 

$588

$650

$532

$675

1 points   

QUESTION 2

1.

In March 2015 you have an emergency surgery.  You need to figure out your share of the total medical expenses.  Your annual health insurance premium costs you $450.  Your insurance policy has a $1500 annual deductible after which it pays 70% of the charges (70/30).  The total bill for surgery was $17,500.  What is your portion of the surgery costs?

a.

$6,600 your total bill

b.

$5100 your total bill

c.

$6,300 your total bill

d.

$4800 your total bill

1.5 points   

QUESTION 3

1. This is not your year.  It is now June of the same year.  Just after recovering from the surgery you are rushed to the hospital with a massive blood clot in your leg.  The total bill this time comes to $4,000.  All costs associated with treatment of the blood clot are covered under your health insurance policy.

How much of this $4,000 bill will you need to pay? 

a.

$1,500 your total bill

b.

$0 your total bill

c.

$4,000 your total bill

d.

$300 your total bill

1.5 points   

QUESTION 4

1. Had the bloodclot problem occured in February of the next calendar year, how much of the bill would you have had to pay?

$1,500

$4,000

$0

$2,250

1 points   

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hw1

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QUESTION 1

1. Using the "Human Life Value" method, how much life insurance should you purchase if you take into account 3% annual inflation over the next 45 years until retirement, an annual income of $61,500 received at the start of each years, and a time value of money of 7%?  (Assume 100% income replacement and a marginal tax rate of 15%)

a.

$1,272,027

b.

$1,236,658

c.

$1,588,959.94

d.

$1,545,823

1 points   

QUESTION 2

1. Using the "Desired Income" method, how much insurance would be needed if you want to provide your survisors with a real annual income of $55,000 at the beginning of each year?  (Assume a before-tax rate of return of 7%, a marginal tax rate of 22%, and annual inflation rate of 3% per year.)

2.

a.

$2,535,620

b.

$2,301,255

c.

$1,833,333

d.

$1,007326

1 points   

QUESTION 3

1. You are 40 years old and earn $65,000 annually.  Based on a multiple of income of 12, how much life insurance should you purchase?

2.

a.

the answer is not given

b.

$650,000

c.

$1,300,000

d.

$780,000

1 points   

QUESTION 4

1. Using the "Desired Income" method, if you want to provide your survivors with a nominal annual income of $55,000 at the beginning of each year, how much life insurance is needed assuming your survivors can earn 7% interest annually?  Assume a combined tax rate of 22%.

2.

a.

$268,817

b.

$785,714

c.

$250,000

d.

$1,007,326

1 points   

QUESTION 5

1. Using the "Human Life Value" method, how much life insurance should you purchase if you have 45 years until retirement, an annual income of $61,500 received at the start of each years, and a time value of money of 7%?  (Assume 80% income replacement, ignore taxes and inflation.)

a.

$716,249

b.

$895,311

c.

$836,740

d.

$669,392