Monthly Mortgage Payment, 401(k), Interest, Deposit, Excel, Down Payment.
This is a Mathematics Test including questions on 401(k), Interest, Deposit, Monthly Mortgage Payment, Saving, Excel, Down Payment, Mortgage, Mortgage Payment, APR, Minimum Payment, 401(k) Savings, Future Value FV, PMT.
Oscar is preparing to retire. His 401(k) currently has a balance of $248,797.42. If he’s been depositing $163 each month for the last 33 years, how much has Oscar earned in interest so far?
184,249.42 – Correct
Bernadette has enrolled in a 401(k) savings plan offered by her employer. She decides to deposit $200 to her account each month. If her account pays 6% annually, what would you type into Excel to calculate the account balance after 40 years of saving?
= [ Select ] ( [ Select ] , [ Select ] , [ Select ] )
Correct Answers
Answer 1: FV
Answer 2: .06/12
3rd Answer: 12 x 40
Answer 4: – 200
Randall is purchasing a home priced at $220,000. He agrees to 4.75% interest over 20 years, and the bank tells him that after his down payment, his monthly payment will be $1,280.93. What will the total of all of Randall’s payments be over the lifetime of the mortgage?
307,423.2 – Correct
Miguel currently pays $950 for rent each month and has decided to purchase a home. The home he wants costs $156,000. He has a down payment of $25,000 and has already secured 4.75% on a 20-year mortgage. What would Miguel need to type into Excel to figure his monthly mortgage payment?
= …………….(0.0475/12, 20 x 12, ……………..)
Answer 1:
PMT – Correct
Answer 2:
-131000 – Correct
Your friend is going to borrow $87,500 using a 15 year mortgage with a 5.25% APR. Which of the following could you type into Excel to find her monthly mortgage payment?
87500 ( .0525 12 ) 12 × 15
= 875000 ( 1 + .0525 12 ) 12 × 15
=FV(0.0525/12,12 x 15,-87500)
0.0525/12 × 15 × 12 × 87500
=PMT(0.0525/12,12 x 15,-87500) – Correct!
=PV(0.0525/12,12 x 15,-87500)
You carry over a balance of $400 on a recent purchase of a washing machine, you will just pay the minimum payment each month for the next three months. The APR is 15.99% and the minimum payment each month is 4% of the balance. Determine the finance charge, new balance, and minimum payment required for the first month, and the starting balance for month 2 in the table below (round to the nearest cent, do not include units with your answers):
| Month | Carry-over balance | Finance charge | New balance | Minimum payment |
| 1 | $400 | —————— | ————— | ——————- |
| 2 | ——————- |
Correct Answers
Answer 1: 5.33
Answer 2: 405.33
3rd Answer: 16.21
Answer 4: 389.12