Exemplary Writers

# MATH105: Problem Set 2

Problem Set 2: MATH105

Only do the one question that corresponds to your assigned number.  You have an A question and a B question.

• first set out the general formula
• second show the formula with your numbers substituted
• then calculate

Be sure to only round at the last step for your final answer.

The A problem is about simple interest. The related text information is section 7-3 examples 2,4,5,6,7 and 7-5 example 2.

NOTE:  finance charge and simple interest mean the same.

The B problem is about mortgages. The related text information is chapter 7 section 7-6 examples 4, 5, 6. MATH105

1AMATH105         You buy items costing \$650 and finance the cost with a fixed installment loan for 18 months at 7% simple interest per year.

1. What is the finance charge?
2. What is your monthly payment?

1B MATH105       You plan to purchase a house for \$400,000 and you will make a 20% down payment. You will finance the balance at 3.13% for 30 years.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

2A        You plan to purchase items for \$500 and will finance the cost with a simple interest fixed installment loan.  The seller tells you that you will have to pay \$ 20 per month for 36 months.

1. What is the finance charge?
2. What is the simple interest rate? (Round to the nearest hundredth)

2B        You plan to purchase a house for \$400,000 and you will make a 20% down payment. You will finance the balance with a 30 year fixed mortgage at 3.34 %.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

3A  MATH105       You buy items costing \$750 and finance the cost with a simple interest fixed installment loan at 6 % simple interest per year.  The finance charge is \$90.

1. How many years will you be paying?
2. What is your monthly payment

3B MATH105      You plan to purchase a house for \$500,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 3.12%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

4AMATH105        You buy items costing \$ 1900 and finance the cost with a simple interest fixed installment loan for 24 months at 8% simple interest per year.

1. What is the finance charge?
2. What is your monthly payment?

4BMATH105         You plan to purchase a house for \$375,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 3.16% .

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

5A.MATH105        You plan to purchase items for \$1500 and will finance the cost with a simple interest fixed installment loan. The seller tells you that            you      will have to pay \$60 per month for 36 months.

1. What is the finance charge?
2. What is the simple interest rate? (Round to the nearest hundredth)

5 BMATH105         You plan to purchase a house for \$350,00 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.65%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

6A  MATH105       You buy items costing \$1200 and finance the cost with a simple interest fixed installment loan at 6 % simple interest per year.          The finance charge is \$216.

1. How many years will you be paying?
2. What is be your monthly payment?

6B   MATH105      You plan to purchase a house for \$450,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.75%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid

7A   MATH105      You buy items costing \$900 and finance the cost with a fixed installment loan for 12 months at 8% simple interest per year.

1. What is the finance charge?
2. What is the monthly payment?

7B MATH105        You plan to purchase a house for \$550,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.85%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

8A MATH105        You plan to purchase items for \$600 and will finance the cost with a simple interest fixed installment loan. The seller tells you that you      will have to pay \$60 per month for 12 months.

1. What is the finance charge?
2. What is the simple interest rate? (Round to the nearest hundredth)

8B  MATH105       You plan to purchase a house for \$600,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.95%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

9A  MATH105       You buy items costing \$1200 and finance the cost with a simple interest fixed installment loan at 7% simple interest per year.  The             finance charge is \$300.

1. How many years will you be paying?
2. What is your monthly payment?

9B  MATH105       You plan to purchase a house for \$575,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.62%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

10A  MATH105     You buy items costing \$ 2300 and finance the cost with a simple interest fixed installment loan for 24 months at 5% simple interest             per       year.

1. What is the finance charge?
2. What is your monthly payment

10B  MATH105     You plan to purchase a house for \$525,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.72%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

11A MATH105      You plan to purchase items for \$2100 and will finance the cost with a simple interest fixed installment loan. The seller tells you that      you      will have to pay \$70 per month for 36 months.

1. What is the finance charge?
2. What is the simple interest rate? (Round to the nearest hundredth)

11B MATH105      You plan to purchase a house for \$ 475,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.82%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

12A  MATH105     You buy items costing \$2500 and finance the cost with a simple interest fixed installment loan at 4% simple interest per year.  You are      told that the finance charge is \$200.

1. How many years will you be paying?
2. What is your monthly payment?

12B  MATH105     You plan to purchase a house for \$425,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.92%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

13A MATH105      You buy items costing \$1300 and finance the cost with a simple interest fixed installment loan for 12 months at 6 % simple interest            per       year.

1. What is the finance charge?
2. What is your monthly payment be

13B  MATH105     You plan to purchase a house for \$375,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.67%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

14A MATH105      You plan to purchase items for \$1500 and will finance the cost with a simple interest fixed installment loan. The seller tells you that      you      will have to pay \$80 per month for 24 months.

1. What is the finance charge?
2. What is the simple interest rate? (Round to the nearest hundredth)

14B MATH105      You plan to purchase a house for \$325,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.77%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

15A MATH105      You buy items costing \$900 and finance the cost with a simple interest fixed installment loan at 5% simple interest per year.  The             finance charge is \$112.50.

1. How many years will you be paying?
2. What is your monthly payment?

15B MATH105      You plan to purchase a house for \$410,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.87%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

16A MATH105      You buy items costing \$800 and finance the cost with a simple interest fixed installment loan. You finance the cost for 30 months at      7%       simple interest per year.

1. What is the finance charge?
2. What is your monthly payment?

16B MATH105     You plan to purchase a house for \$430,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.75%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

17A MATH105      You plan to purchase items for \$3400 and will finance the cost with a simple interest fixed installment loan. The seller tells you that      you      will have to pay \$115 per month for 36 months.

1. What is the finance charge?
2. What is the simple interest rate? (Round to the nearest hundredth)

17B MATH105      You plan to purchase a house for \$300,000 and you will make a 20% down, payment. You will finance the balance with a 30-year fixed mortgage at 3.12%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

18A MATH105      You buy items costing \$ 3200 and finance the cost with a simple interest fixed installment loan at 4 % simple interest per year.  The             finance charge is \$320.

1. How many years will you be paying?
2. What is your monthly payment

18B MATH105       You plan to purchase a house for \$ 400,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 3.34 %.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

19A  MATH105     You buy items costing \$3000 and finance the cost with a simple interest fixed installment loan for 24 months at 6% simple interest per      year.

1. What is the finance charge?
2. What is your monthly payment?

19B  MATH105     You plan to purchase a house for \$600,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 3.12%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

20A  MATH105     You plan to purchase items for \$ 2900 and will finance the cost with a simple interest fixed installment loan. The seller tells you that      you      will have to pay \$100 per month for 36 months.

1. What is the finance charge?
2. What is the simple interest rate?  (Round to the nearest hundredth)

20B  MATH105     You plan to purchase a house for \$350,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 3.16%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

21A  MATH105     You buy items costing \$2700 and finance the cost with a simple interest fixed installment loan at 4% simple interest per year.  The             finance charge is \$324.

1. How many years will you be paying?
2. What is your monthly payment?

21B MATH105      You plan to purchase a house for \$450,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.65%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

22A  MATH105     You buy items costing \$800 and finance the cost with a simple interest fixed installment loan for 18 months at 5% simple interest per      year.

1. What is the finance charge?
2. What is your monthly payment?

22B MATH105      You plan to purchase a house for \$550,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.75%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

23A  MATH105     You plan to purchase items for \$600 and will finance the cost with a simple interest fixed installment loan. The seller tells you that you      will have to pay \$20 per month for 36 months.

1. What is the finance charge?
2. What is the simple interest rate?  (Round to the nearest hundredth)

23B MATH105      You plan to purchase a house for \$450,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.85%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

24A MATH105      You buy items costing \$5000 and will finance the cost with a simple interest fixed installment loan at 5% simple interest per year.  The       finance charge is \$500.

1. How many years will you be paying?
2. What is your monthly payment?

24B MATH105      You plan to purchase a house for \$500,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.95%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

25A  MATH105     You buy items costing \$1000 and finance the cost with a simple interest fixed installment loan for 30 months at 4% simple interest             per       year.

1. What is the finance charge?
2. What is your monthly payment?

25B MATH105      You plan to purchase a house for \$475,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.62%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

26A MATH105      You plan to purchase items for \$900 and will finance the cost with a simple interest fixed installment loan. The seller tells you that you      will have to pay \$40 per month for 36 months.

1. What is the finance charge?
2. What is the simple interest rate? (Round to the nearest hundredth

26B MATH105      You plan to purchase a house for \$425,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.72%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

27A MATH105      You buy items costing \$3000 and finance the cost with a simple interest fixed installment loan at 5% simple interest per year.  The             finance charge is \$600.

1. How many years will you be paying?
2. What is your monthly payment?

27B MATH105      You plan to purchase a house for \$ 375,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.82%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

28A MATH105      You buy items costing \$2000 and finance the cost with a simple interest fixed installment loan for 48 months at 5% simple interest per      year.

1. What is the finance charge?
2. What is your monthly payment?

28B MATH105      You plan to purchase a house for \$425,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.92%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

29A   MATH105    You plan to purchase items for \$600 and will finance the cost with a simple interest fixed installment loan. The seller tells you that you      will have to pay \$20 per month for 36 months.

1. What is the finance charge?
2. What is the simple interest rate? (Round to the nearest hundredth)

29B  MATH105     You plan to purchase a house for \$475,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.67%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

30A  MATH105     You buy items costing \$400 and finance the cost with a simple interest fixed installment loan at 6% simple interest per year.  The             finance charge is \$48.

1. How many years will you be paying?
2. What is your monthly payment?

30B  MATH105     You plan to purchase a house for \$425,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.77%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

31AMATH105       You buy items costing \$600 and finance the cost with a simple interest fixed installment loan for 18 months at 6% simple interest per      year.

1. What is the finance charge?
2. What is your monthly payment?

31B MATH105      You plan to purchase a house for \$310,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.87%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

32A MATH105      You plan to purchase items for \$4000 and will finance the cost with a simple interest fixed installment loan. The seller tells you that      you      will have to pay \$100 per month for 48 months.

1. What is the finance charge?
2. What is the simple interest rate?  (Round to the nearest hundredth

32B MATH105      You plan to purchase a house for \$330,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.97%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

33A MATH105      You buy items costing \$800 and finance the cost with a simple interest fixed installment loan at 5% simple interest per year.  The             finance charge is \$80.

1. How many years will you be paying?
2. What is your monthly payment?

33BMATH105        You plan to purchase a house for 430,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 3.97%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?

34AMATH105      You buy items costing \$900 and finance the cost with a simple interest fixed installment loan for 24 months at 5% simple interest per      year.

1. What is the finance charge?
2. What is your monthly payment?

34BMATH105       You plan to purchase a house for 230,000 and you will make a 20% down payment. You will finance the balance with a 30-year fixed mortgage at 2.67%.

1. What will the monthly payment be?
2. Assuming you take the full term of the mortgage, how much total interest will you have paid?