Math (Outstanding Balance)

Question 1

A borrower is arranging a mortgage with Nicety Finance Company. The loan amount is $175,000, the interest rate is 4.5% per annum, compounded semi-annually, the amortization period is 20 years, and the contractual term is 2 years. If payments are made monthly and rounded up to the next higher $10, calculate the outstanding balance at the end of the loan term.

(1) $144,157.84
(2) $157,323.50
(3) $163,479.73
(4) $151,232.96

Answer 1

3

j2=4.5 (convert to j12)
n=20(240)

175,000 ? 0

then 
24
import
shift
amort 
= 163,649.87

Question 2

A mortgage loan has a face value of $370,000, an interest rate of j2 = 5.5%, an amortization period of 20 years, a term of 3 years, and an option to make accelerated biweekly payments, rounded up to the next highest dollar. If this option is exercised, what is the outstanding balance owing at the end of the 3-year term?

(1) $232,928.17
(2) $311,500.07
(3) $328,192.44
(4) $317,935.02

Answer 2

3

i am close but..

j2 = 5.5% (convert to 26 payments)
n= 20 X 13 =260

370,000 ? 0

then go input 36 amort

=329,930.34 which is very close!!!!

Question 3

A mortgage was written for $176,000 with an interest rate of j2=6.5%, an amortization period of 15 years, and monthly payments. Calculate the outstanding balance owing at the end of five years, rounded to the nearest dollar.

(1) $150,637
(2) $146,984
(3) $141,986
(4) $134,809

Answer 3

4

j2 = 6.5
n=15(180 months)

176,000 ? 0

pmt = 1524.81

60/input/shift/amort
=$134,808.57

Question 4

A mortgage loan has a face value of $300,000, an interest rate of j2 = 4%, an amortization period of 25 years, a term of 5 years, and an option to make accelerated biweekly payments, rounded up to the next highest dollar. If this option is exercised, what is the outstanding balance owing at the end of the 5-year term?

(1) $317,935.02
(2) $232,928.17
(3) $311,500.07
(4) $252,210.35

Answer 4

4

no freaking idea

im thinking its

j2=4 (convert to j26)
n= 25 X 13 months (1 extra because of 26 weeks

300,000 ? 0

65/input/shift/amort

Question 5

A mortgage with a face value of $288,000 and a contract rate of interest rate of 4.2% per annum, compounded monthly calls for monthly payments of $1,780. What is the outstanding balance immediately after the 40th monthly payment has been made?

(1) $245,223.45
(2) $254,915.90
(3) $224,654.84
(4) $232,919.53

Answer 5

2

j12= 4.2
n=40

288,000 -1780 ?

=$254,915.90

Question 6

A mortgage loan, created five years ago, was originally in the amount of $25,500. The contract called for interest at the rate of 9% per annum, compounded semi-annually and constant monthly payments of $219.39. Calculate the outstanding balance due immediately after the 36th and the 60th monthly payments have been made.

(1) $23,550.43; $23,480.78
(2) $24,201.56; $23,124.56
(3) $24,540.22; $23,744.14
(4) $24,201.56; $23,992.19

Answer 6

2

j2 = 9%
n=60

25,500 -219.39 0

36 imput/shift/amort

= $24,201.56/$23,124.58