1. Shawn Fitzgerald finds a suitable property and agrees upon a selling price of $137,900. The mortgage company requires a 20% down payment and Shawn chooses to finance the property for 30 years at

Question

8%. What is the total amount of interest charged, rounded to the nearest whole dollar?

My answer=$181,096.07

2. Tom Newman took out a simple interest loan of $1,500.00 at 10 percent interest for 12 months. After 4 payments the balance is $1,100.00. He pays off the loan when the next payment is due. What is the interest?

My answer=$9.17

3. Reginald Wallace's gross weekly salary is $515.00. His weekly federal withholding is $55.00. The Social Security tax is 6.2 percent of the first $90,000.00. The Medicare tax is 1.45 percent of gross pay. The state tax is 1.5 percent of gross pay. Each week he pays $12.40 for medical insurance. How much is deducted from Reginald's weekly wages for state tax and Medicare tax?

My answer=$15.19

4. Brad Clark took out a simple interest loan at 13% interest for 12 months. His previous balance is $619. What is the final payment if the loan is paid off with the next payment?

My answer=$625.71

5. Josie Alvarez obtained a personal loan of $3000 at 14 % for 24 months. The monthly payment is $144. The balance of the loan after 18 months is $830.78. What is the new principal after the 19th payment?

My answer=$312.13

Am I correct? Thank you!

Answer 1

1. Correct.

2. I = Po*r*t = 1100*(0.08/12 )*1 = $7.33

3. State Tax = 0.015 * 515 = $7.73

Medicare Tax = 0.0145 * 515 = $7.47

4. P = Po + Po*r*t =
619 + 619*(0.13/12)*1 = 625.71

5. 830.78-144 = $686.78

The given bal. is not compatible with the loan:

144/mo * 24mo = $3456

3456-144/mo * 18mo = 3456 - 2592 = $864 = Bal after 18 months.

864 - 144 = $720 = Bal. after 19 months

720/144 = 5 payments remaining.