math 101 unit 3 QUESTIONS AND
VERIFIED CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
Your _____ is the balance of your retirement account at the time of retirement. - CORRECT
ANSWER-nest egg
Sara calculates that if she makes a deposit of $5 each month at an APR of 3.6%, then at the end
of two years she'll have $128. Lee says that the correct amount is $133. The Regular Deposits
Rule of Thumb should be helpful here.
What was the total amount deposited (ignoring interest earned)
What would the balance be if the total amount were deposited at the beginning of the two
years? (Assume no additional deposits are made and the money compounds monthly at an APR
of 3.6%)
Whose answer(s) is ruled out by these calculations? Why? - CORRECT ANSWER-120
128.94
Sara's answer is not ruled out by this calculation because her calculation is more than the total
amount deposited but less than what the balance would be if the total amount was deposited
at the beginning of the two years. Lee's answer is ruled out because his calculation is more than
what the balance would be if the total amount was deposited at the beginning of the two years.
You begin saving for retirement at age 25, and you plan to retire at age 70. You want to deposit
a certain amount each month into an account that pays an APR of 6% compounded monthly.
, Make a table that shows the amount you must deposit each month in terms of the nest egg you
desire to have when you retire. (Round your answers to the nearest cent.) - CORRECT ANSWER-
100,000=$36.28
$200,000=$72.57
$1000000=362.85
To buy a car, you borrow $25,000 with a term of three years at an APR of 6.5%. What is your
monthly payment? - CORRECT ANSWER-$766.23
A fairly good estimate for a long-term loan with a moderate or high interest rate is that the
monthly payment is _____ as large as the principal times the monthly interest rate. - CORRECT
ANSWER-at least
You are negotiating a loan with a bank officer. The loan is at a moderate interest rate, and the
term of the loan is six months. The bank officer tells you your monthly payment. Explain how
you can quickly check whether or not the figure the bank officer gave you is reasonable. Choose
the best answer. - CORRECT ANSWER-Divide the loan amount by 6. This is the minimum you will
be paying.
You are negotiating a home mortgage that has a term of 30 years. The interest rate is moderate.
You are presented with a monthly payment figure that does not include taxes and insurance.
Explain how you can quickly check whether the figure the bank officer gave you is reasonable -
CORRECT ANSWER-Multiply the principal by the monthly interest rate as a decimal. This gives a
low but reasonable approximation of the monthly payment.
You are negotiating a home mortgage that has a term of 30 years. The interest rate is moderate.
You are presented with a monthly payment figure that does not include taxes and insurance.
Explain how you can quickly check whether the figure the bank officer gave you is reasonable.
Choose the best answer. - CORRECT ANSWER-Multiply the principal by the monthly interest rate
as a decimal. This gives a low but reasonable approximation of the monthly payment.
VERIFIED CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
Your _____ is the balance of your retirement account at the time of retirement. - CORRECT
ANSWER-nest egg
Sara calculates that if she makes a deposit of $5 each month at an APR of 3.6%, then at the end
of two years she'll have $128. Lee says that the correct amount is $133. The Regular Deposits
Rule of Thumb should be helpful here.
What was the total amount deposited (ignoring interest earned)
What would the balance be if the total amount were deposited at the beginning of the two
years? (Assume no additional deposits are made and the money compounds monthly at an APR
of 3.6%)
Whose answer(s) is ruled out by these calculations? Why? - CORRECT ANSWER-120
128.94
Sara's answer is not ruled out by this calculation because her calculation is more than the total
amount deposited but less than what the balance would be if the total amount was deposited
at the beginning of the two years. Lee's answer is ruled out because his calculation is more than
what the balance would be if the total amount was deposited at the beginning of the two years.
You begin saving for retirement at age 25, and you plan to retire at age 70. You want to deposit
a certain amount each month into an account that pays an APR of 6% compounded monthly.
, Make a table that shows the amount you must deposit each month in terms of the nest egg you
desire to have when you retire. (Round your answers to the nearest cent.) - CORRECT ANSWER-
100,000=$36.28
$200,000=$72.57
$1000000=362.85
To buy a car, you borrow $25,000 with a term of three years at an APR of 6.5%. What is your
monthly payment? - CORRECT ANSWER-$766.23
A fairly good estimate for a long-term loan with a moderate or high interest rate is that the
monthly payment is _____ as large as the principal times the monthly interest rate. - CORRECT
ANSWER-at least
You are negotiating a loan with a bank officer. The loan is at a moderate interest rate, and the
term of the loan is six months. The bank officer tells you your monthly payment. Explain how
you can quickly check whether or not the figure the bank officer gave you is reasonable. Choose
the best answer. - CORRECT ANSWER-Divide the loan amount by 6. This is the minimum you will
be paying.
You are negotiating a home mortgage that has a term of 30 years. The interest rate is moderate.
You are presented with a monthly payment figure that does not include taxes and insurance.
Explain how you can quickly check whether the figure the bank officer gave you is reasonable -
CORRECT ANSWER-Multiply the principal by the monthly interest rate as a decimal. This gives a
low but reasonable approximation of the monthly payment.
You are negotiating a home mortgage that has a term of 30 years. The interest rate is moderate.
You are presented with a monthly payment figure that does not include taxes and insurance.
Explain how you can quickly check whether the figure the bank officer gave you is reasonable.
Choose the best answer. - CORRECT ANSWER-Multiply the principal by the monthly interest rate
as a decimal. This gives a low but reasonable approximation of the monthly payment.
