Considering the following pairs of choices for a $\$ 120,000$ mortgage loan. Calculate the monthly payment and total closing costs for below choice. Explain which loan you would choose and why. 1: $30$-year fixed rate mortgage at $4 \%$ with no closing costs and no points Choice 2: $30$ -year fixed rate mortgage at $3 \%$ with closing costs of $\$ 1200$ and $4$ points

You have a choice between a $30$-year fixed rate loan at $4 \%$ and an $\mathrm{ARM}$ with a first-year rate of $2.5 \%$ Neglecting compounding and changes in principal, estimate your monthly savings with the $\mathrm{ARM}$ during the first year on a $\$ 125,000$ loan. Suppose that the $\mathrm{ARM}$ rate rises to $5.5 \%$ at the start of the second year. Approximately how much extra will you then be paying over what you would have paid if you had taken the fixed rate loan?

Which of the following is true of a secured loan?

a.)In a secured loan, borrowers are charged a higher interest rate as compared to an unsecured loan.

b.)In a secured loan, the lender can take money from the borrower's bank account once the following month's paycheck is deposited.

c.)In a secured loan, the borrower is required to pledge an asset to ensure the repayment of the loan.

d.)In a secured loan, borrowers receive direct and easy access to the loan money through a debit card.

You have a total credit card debt of $\$ 4000$. You receive an offer to transfer this debt to a new card with an introductory $\mathrm{APR}$ of $6 \%$ for the first $6$ months. After that, the rate becomes $24 \%$.

a. What is the monthly interest payment on $\$ 4000$ during the first $6$ months? (Assume you pay nothing toward principal and don't charge any further debts.)

b. What is the monthly interest payment on $\$ 4000$ after the first $6$ months? Comment on the change from the teaser rate.

Assume that on January 1 you have a balance of $\$ 10,000$ on each of the following credit cards, which you want to pay off in the given amount of time. Assume that you make no additional charges on the card after January 1. a. Calculate your monthly payments. b. When the card is paid off, how much will you have paid since January 1 ? c. What percentage of the total payment found in part (b) is for interest? The credit card APR is $20 \%$, and you want to pay off the balance in $2$ years.

Consider the following pairs of loan options for a $\$ 120,000$ mortgage. Calculate the monthly payment and total closing costs for each option. Explain which option you would choose and why.

Choice $1$: $30$-year fixed rate at $4 \%$ with closing costs of $\$ 1200$ and no points

Choice $2$: $30$-year fixed rate at $3.5 \%$ with closing costs of $\$ 1200$ and $2$ points

You have a total credit card debt of $\$ 4000$. You receive an offer to transfer this debt to a new card with an introductory APR of $6 \%$ for the first 6 months. After that, the rate becomes $24 \%$. a. What is the monthly interest payment on $\$ 4000$ during the first $6$ months? (Assume you pay nothing toward principal and don't charge any further amounts on the new card.) b. What is the monthly interest payment on $\$ 4000$ after the first $6$ months? Comment on the change from the teaser rate.

Answer the question to help you recall what you have read. If you cannot answer a question, read the related section again.

What is the purpose of a check endorsement? How does a blank endorsement differ from a restrictive endorsement?

Find the interest rates earned on each of the following: a. You borrow $720 and promise to pay back$792 at the end of 1 year. b. You lend $720 and the borrower promises to pay you$792 at the end of 1 year. b. You lend $720 and the borrower promises to pay you$792 at the end of 1 year. d. You borrow $15,000 and promise to make payments of$4,058.60 at the end of each year for 5 years.

Should you have to pay into a system that provides medical coverage to other people less health conscious than you? Why or why not?

Consider the following loans.

A home mortgage of $\$ 100,000$ with a fixed $\mathrm{APR}$ of $4 \%$ for $30$ years

Considering the following loans. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is for the principal and what percentage is for interest? You borrow $\$ 100,000$ for a period of $30$ years at a fixed APR of $5.5 \%$.

Assume that on January 1 you have a balance of $\$ 10,000$ on each of the following credit cards, which you want to pay off in the given amount of time. Assume that you make no additional charges on the card after January 1. a. Calculate your monthly payments. b. When the card is paid off, how much will you have paid since January 1 ? c. What percentage of the total payment found in part (b) is for interest? The credit card APR is $22 \%$, and you want to pay off the balance in $1$ year.

Suppose that on January $1$ you have a balance of $\$ 5000$ on the following credit cards, which you want to pay off in the given amount of time. Assume that you make no additional charges to the card after January $1$.

a. Calculate your monthly payments.

b. When the card is paid off, how much will you have paid since January $1$?

c. What percentage of your total payment (part (b)) is interest?

The credit card $\mathrm{APR}$, is $18 \%$, and you want to pay off the balance in $1$ year.