Finance Questions with Answers
You are interested in saving money for your first house. Your plan is to make regular deposits into an
account that will earn 10.20% per year. Your first deposit of $3,500 will be made today. You also plan to
make additional deposits at the end each of the next 7 years of $2,000. How much money will be in your
account after making your final deposit? - correct answers>>1. Find Fv of 3500
- PV=-3500
- N=7
- I=10.20
- P/Y=1
FV= 6907.79
2. Find FV of payments
- PMT=2000
- N=7
- P/Y=1
- I=10.20
FV=19,091.27
3. Add together
(6907.79+19,091.27) = 25,999
*25,999*
What is the required monthly payment on a $350,000 mortgage? Assume a standard mortgage (360
months) with monthly payments. Use a nominal rate of 6.90%. - correct answers>>PV = -350,000
N= 360 (30x12)
P/Y= 12
I= 6.90%
, PMT= 2305
*2305*
You want to save $98,000 to buy an boat by making an equal, end of year payment into a brokerage
account for the next 9 years. If you expect to earn an annual interest rate of 7.75% on your account, how
much do you need to deposit each year into your account? - correct answers>>*7930*
FV= 98000
I= 7.75
N= 9
P/Y= 1
PMT= 7930
What is the remaining balance on a $225,000 mortgage after 95 months? The mortgage is a standard
mortgage (360 months) with monthly payments and a nominal rate of 6.90%. - correct answers>>P/Y= 12
N= 30x12 = 360
PV= -225,000
I= 6.90
1. Find PMT
= 1481.85
2.
1 [INPUT], 95 [SHIFT] AMORT, = x 3
Balance = 201,315
You are interested in saving money for your first house. Your plan is to make regular deposits into an
account that will earn 10.20% per year. Your first deposit of $3,500 will be made today. You also plan to
make additional deposits at the end each of the next 7 years of $2,000. How much money will be in your
account after making your final deposit? - correct answers>>1. Find Fv of 3500
- PV=-3500
- N=7
- I=10.20
- P/Y=1
FV= 6907.79
2. Find FV of payments
- PMT=2000
- N=7
- P/Y=1
- I=10.20
FV=19,091.27
3. Add together
(6907.79+19,091.27) = 25,999
*25,999*
What is the required monthly payment on a $350,000 mortgage? Assume a standard mortgage (360
months) with monthly payments. Use a nominal rate of 6.90%. - correct answers>>PV = -350,000
N= 360 (30x12)
P/Y= 12
I= 6.90%
, PMT= 2305
*2305*
You want to save $98,000 to buy an boat by making an equal, end of year payment into a brokerage
account for the next 9 years. If you expect to earn an annual interest rate of 7.75% on your account, how
much do you need to deposit each year into your account? - correct answers>>*7930*
FV= 98000
I= 7.75
N= 9
P/Y= 1
PMT= 7930
What is the remaining balance on a $225,000 mortgage after 95 months? The mortgage is a standard
mortgage (360 months) with monthly payments and a nominal rate of 6.90%. - correct answers>>P/Y= 12
N= 30x12 = 360
PV= -225,000
I= 6.90
1. Find PMT
= 1481.85
2.
1 [INPUT], 95 [SHIFT] AMORT, = x 3
Balance = 201,315
