Mrs. Badr's Class



Personal FinanceReviewName: ___________________________What is the simple interest formula? What does each letter stand for?What is the compound interest formula? What doe each of the letters stand for?If you earned $358 in simple interest in 16 months at an annual rate of 4%, how much money did you invest?Find the amount of money in an account if $1,238.00 was initially deposited with 2.2% interest for 6 years compounded quarterly.5-8) You just received an inheritance of $15,000. ?You would like to put the money into the best savings account possible and don’t plan to touch the money for the next five years. You have the following three options.Bank of America1.7 % compounded weeklyNo incentivesNo FeesChase2.7% compounded monthlyNo Incentives$10 per monthPNC1.2% compounded daily$250 incentiveNo feesUse the space below to find out how much you would have in each of the three cases. ?Then choose which bank should receive your business based on your calculations.Bank of AmericaChasePNCWhich one are you going to choose and why?9. Lucas is purchasing a home for $125,000. He is making a 30% down payment and estimates the closing costs at $4,000. What is the amount of the mortgage?10. Ellen ?is planning to purchase a home for $75,000. She will make a 15% down payment. Closing costs are estimated at 2% of the mortgage. How much cash will she need at closing?11. ?Juan wants to purchase a house that costs $100,000. His mortgage lender requires a 15% down payment for a 30-year loan. His monthly mortgage payment will be $509.62. A) How much will Juan pay back over 30 years?B) How much will he pay in interest?12. ?Mary is purchasing a home for $85,000. Her lender requires a 20% down payment and $2,000 in closing costs. A) What is the amount of her mortgage? B) How much cash will she need to purchase the home (bring to the closing)?13. Sonia has paid on a 30-year loan for 10 years. Her interest rate is 7%, and her current monthly payment is $665.30. She can refinance the current mortgage and get a 20-year mortgage at 5%, and her new payment would be $556.33. A) If the closing costs to refinance are $1,500, how many months would it take to reach or pass the breakeven point?B) If Sonia plans to move in the next year should she refinance? Why or why not?14. A) Find the tax owed on a property with an assessed value of $85,000 if the tax rate is $3.45 per hundred.14B) Find the tax owed on a property with an assessed value of $85,000 if the tax rate is $9.43 per thousand ................
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