Quiz Questions


1	ABC Company borrowed $200,000 at 15% compounded annually. The Company repaid the loan by equal payments at the end of each year for 10 years. How much interest is paid during the first seven years?
		A)	$109,012.54
		B)	$17,065.81
		C)	$100,548.53
		D)	$169,940.35
		E)	$278,952.89


2	Referring to the previous question, what part of the third payment is "principal"?
		A)	$26,823.24
		B)	$85,345.68
		C)	$13,027.17
		D)	$18,202.17
		E)	$21,648.24


3	A loan of $9000 is repaid by equal quarterly payments for five years. The interest rate on the loan is 10% compounded quarterly. What is the outstanding balance just after the payment at the end of the third year?
		A)	$4860.51
		B)	$4139.49
		C)	$2067.38
		D)	$5922.06
		E)	$3844.27


4	Referring to the previous question, how much interest is paid during the first two years?
		A)	$3345.40
		B)	$3077.94
		C)	$1273.19
		D)	$2458.44
		E)	$1540.65


5	A $100,000 loan is amortized by monthly payments over 25 years. The interest rate on the loan is 10% compounded semiannually. What is the "interest part" of the 24th payment?
		A)	$800.44
		B)	$793.95
		C)	$169.93
		D)	$801.93
		E)	$798.88


6	Referring to the previous question, how much principal is repaid during the first three years?
		A)	$4032.65
		B)	$2947.35
		C)	$2447.72
		D)	$3104.30
		E)	$3249.09


7	A loan of $18,000 is repaid by quarterly payments of $1500. Interest is charged at 10% compounded quarterly. What is the size of the final payment?
		A)	$828.52
		B)	$723.48
		C)	$671.48
		D)	$35.64
		E)	$1464.36


8	Referring to the previous question, what is the "interest part" of the 10th payment?
		A)	$193.14
		B)	$188.69
		C)	$174.99
		D)	$1311.31
		E)	$3236.45


9	A mortgage loan calls for monthly payments of $750 for twenty-five years. If $80,000 was borrowed, what semiannually compounded nominal rate of interest is being charged?
		A)	10.635%
		B)	10.755%
		C)	10.865%
		D)	10.522%
		E)	10.401%


10	The vendor of a property agrees to take back a $60,000 mortgage at a rate of 8% compounded semiannually with monthly payments of $500 for a three-year term. Calculate the market value of the mortgage if financial institutions are charging 10% compounded semiannually on three-year-term mortgages.
		A)	$41,557.55
		B)	$57,098.85
		C)	$60,000.00
		D)	$53,936.60
		E)	$59,111.11


11	Miss Jones borrowed $10,000 at 12% compounded monthly, and agreed to pay back the loan by equal monthly payments over five years. After making the first ten payments on time, she missed the next four payments. What total amount paid on the scheduled date for the fifteenth payment will bring the loan up-to-date?
		A)	$1068.91
		B)	$1123.45
		C)	$1134.67
		D)	$1116.70
		E)	$1079.60


12	Referring to the previous question, how much extra interest did Miss Jones have to pay because of the late payments?
		A)	$22.47
		B)	$16.85
		C)	$179.15
		D)	$11.25
		E)	$4.50

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