Statistic, Finance Flashcards
Here are 14 numbers. 235 218 266.5 298 222 246 264 255 274 261 277 214 256 239 What is the standard deviation?
24.3. Once you have calculated the mean, enter g s Answer is 24.30.
What would a $15,000 CD be worth after four years?
$15,000 x 1.411582 = $21,173.73
What if you deposited $6,000 per year for eight years; at which time your daughter was going off to college. How much will you have saved, at 9% interest?
$66,170.84
Column 2
$6,000 x 11.028474 = $66,170.84
If I’ll need $20,000 to replace the roof on my building 12 years from now, how much do I have to put aside every year in a replacement reserve account with 9% interest?
Go to column 3 and find the factor for 12 years. OK, now multiply that factor (.049651) by $20,000. The answer is $993.02.
How much do I have to discount a $50,000 bond to receive a 9% return over 10 years?
Find the 10 year factor in column 4 (.422411) and multiply it by $50,000. The answer is $21,121.
What’s it worth today, to buy a mortgage that will give me annual payments of $8,938 for the next 10 years, if I want a 9% return?
Find the column 5 factor (6.417658) and multiply by $8,938. The answer is $57,361.
The capitalization rate for debt; the ratio of the annual debt service to the principal amount of the mortgage loan. The mortgage capitalization rate (Rm) is equivalent to the periodic (monthly, quarterly, annually) mortgage constant times the number of payments per year on a given loan on the day the loan is initiated.
defines
Mortgage Cap Rate
Rm =
Mortgage Cap Rate
What is the Rm for a loan with 9% annual interest for 15 years?
Look in Column 6 and the answer that pops out is .124059.
.133567 is the mortgage constant for a 9% mortgage for _____ years?
13 years
What would the annual payments be on a $180,000 mortgage for 10 years at 9% interest?
Find the factor (.155820) and multiply by $180,000. The answer is $28,047.60
How much do I have to put aside each year, at 7% interest, to accumulate $9,000 to replace a roof in eight years?
f CLEAR FIN
[g] [BEG]
8n
7i
9000 CHS FV
PMT
819.82
Our homeowner’s association will need $50,000 in nine years to replace the swimming pool. How much needs to be set aside in a reserve fund each year if we can invest it at 5.5%?
f CLEAR FIN
[g] [BEG]
9n
5.5 i
50000 CHS FV PMT
4,210.40
You have now performed a calculation of a column 3 function of the six functions of a dollar. You calculated a sinking fund factor - the amount per period which will grow, with compound interest, to $1.
What’s the value today of the right to receive $5,000 in five years, discounted at 8%?
f CLEAR FIN
5n
8i
5000 CHS FV
PV
3,402.92
What is the worth today of a mortgage that will give me annual payments of $10,674.12 for 14 more years, discounted at 8% interest?
f CLEAR FIN
14 n
8i
10674.12 CHS PMT
PV
87,999.97
If we have a mortgage in the amount of $123,000 with annual payments for 20 years, at 6% interest, how much are the annual payments?
f CLEAR FIN
20 n
6i
123000 CHS PV
PMT
10,723.70
You have performed a calculation of a Column 6 function: The installment to repay $1 with interest.
Assume an $82,000 mortgage with monthly payments for 25 years, at 8.35% interest. First let’s calculate the monthly payments.
f CLEAR FIN
25 g n
8.35 g i
82000 CHS PV PMT
652.02
Assume an $118,500 mortgage, at 6.5% with a monthly payment of $883.50. For how many years was the original mortgage written?
f CLEAR FIN
6.5 g i
118500 CHS PV
883.50 PMT
n
240
The answer is 240 - but that is the number of months. To find the number of years, we enter
12 ÷
The answer is 20 years.
Assume an $118,500 mortgage, at 6.5% with a monthly payment of $883.50. For how many years was the original mortgage written?
f CLEAR FIN
6.5 g i
118500 CHS PV
883.50 PMT
n
240
The answer is 240 - but that is the number of months. To find the number of years, we enter
12 ÷
The answer is 20 years.
Assume a 27-year mortgage with a monthly payment of $1,255.74 and a 9.2% interest rate. What was the original amount of the mortgage?
f CLEAR FIN
27 g n
9.2 g i
1255.74 CHS PMT
PV
150,000
We have a $212,750 mortgage for 30 years, and the monthly payment is $1,487.58. What is the interest rate?
f CLEAR FIN
30 g n
212750 PV
1487.58 CHS PMT
i
0.63
12 x
7.50
The real answer is that the interest rate is 7.5% per year.
You can afford payments of $750/month and have $25,000 for a down payment. The bank will give a mortgage for 30 years, at 6.8% with monthly payments. How expensive a house can you buy?
f CLEAR FIN
30 g n
6.8 g i
750 CHS PMT
PV
115,043.88
25000 +
140,043.88
With your $750, you would qualify for a mortgage of just over $115,000. Add in your down payment of $25,000 and you should be able to swing a house up to about $140,000.
Let’s assume we just took out a mortgage of $182,000 for 30 years (monthly payments) at a 6.2% interest rate. How much will we pay in interest the first year?
f CLEAR FIN
30 g n
6.2 g i
182000 CHS PV PMT
What did you get?
You should have gotten 1,114.69. This is the monthly payment.
f CLEAR FIN
6.2 g i
182000 PV
1114.69 CHS PMT
12 f AMORT
= $11,223.50 interest for year 1
xy = $-2,152.78 Principal for year 1
You have a mortgage of $112,500 written for 25 years at 7.2% monthly. However, there will be a balloon payment due at the end of year five. How much will that be?
f CLEAR FIN
25 g n
7.2 g i
112500 CHS PV
PMT
809.54
Then we leave all the information in the rest of the registers, but change the entry in the n register to five years and ask for the future value after five years.
5gn
FV
102,818.06
Therefore, the remaining balance at the end of five years of the 25-year scheduled payout, to be paid off as a lump sum balloon payment, would be $102,818.06.
