1.

Ann gets a fully amortizing 30 year fixed rate mortgage with monthly payments for $1,000,000. The annual interest rate is 3.50%, compounded monthly. What will be Ann s loan balance after her 120th payment (if Ann makes the required monthly payment for 10 years)?"

		"$128,265.18 "
		"$454,104.01 "
		"$461,146.37 "
		"$774,268.75 "

2.

"Bob can get: (1) a fully amortizing 30 year fixed rate mortgage with monthly payments for $500,000 at an annual interest rate of 9%, compounded monthly. (2) a fully amortizing 15 year fixed rate mortgage with monthly payments for $500,000 at an annual interest rate of r, compounded monthly. What does the interest rate on the 15 year fixed rate mortgage need to be so that Bob s payment on the 15 year fixed rate mortgage is the same as the 30 year fixed rate mortgage? (make sure your answer is annualized)"

		0.44%
		0.75%
		5.26%
		7.23%

3.

Bob wants a mortgage where the monthly payment is $3,600. How much can Bob borrow if he gets a fully amortizing 30 year fixed rate mortgage with monthly payments at an annual interest rate of 4.4%, compounded monthly?"

		"$81,818.17 "
		"$102,094.98 "
		"$718,905.95 "
		"$981,818.18 "

4.

"Bob got a fully amortizing 30 year fixed rate mortgage with monthly payments for $1,000,000 at an annual interest rate of 4.5%, compounded monthly. If Bob made the required monthly payment every month, how many dollars in interest will Bob pay in his 125th monthly payment?"

		"$1,393.91 "
		"$2,094.63 "
		"$2,972.23 "
		"$35,666.72 "

5.

Ann got a 30 year fixed rate mortgage with non-constant monthly payments for $700,000. The mortgage has an annual interest rate of 4.5%, compounded monthly. Ann s monthly payment in the first 5 years corresponds to a full amortization schedule (as if it were to fully amortize in 30 years). After 5 years (60 months) of payments, her payment becomes interest only. What is Ann s monthly payment when the loan becomes interest only?"

		"$2,392.90 "
		"$2,625.00 "
		"$3,546.80 "
		"$3,890.83 "