Financial Algebra - Chapter 8 - Home Ownership & Renting

The Martins pay a monthly mortgage payment of $938. They also pay a semi-annual property tax bill of $1,230.96 and semi-annual homeowner's insurance of $840. The property tax and insurance are paid monthly into an escrow account to their lender. What is their monthly payment to their lender?

• $1,283.16

• $1,518.60

• $1,627.67

• $1,672.60

Zane received a quote to move his belongings to his new house. The estimate from the mover is $640 for 6 hours of packing and 5 hours of moving. Zane thinks he can reduce his cost by doing some of the packing and moving himself. If he does, the cost will decrease to $400 for 4 hours of packing and 3 hours of moving. If the mover charges a set hourly rate for packing and another set hourly rate for moving, what are these hourly rates? Solve the system of equations.

6p + 5m = 640

4p + 3m = 400

• packing $50; moving $75

• packing $40; moving $80

• packing $80; moving $40

• packing $75; moving $50

Gretchen is refinishing her gazebo that is in the shape of a regular octagon. The length of one side is 3.5 feet and the apothem is 4.5 feet. What is the area that Gretchen will be refinishing? A = 1/2 x apothem x perimeter.

• 10.5 square feet

• 24 square feet

• 42 square feet

• 63 square feet

Kate and Ashton have been approved for a $200,000 15-year mortgage with an APR of 5.5% How much of their first monthly payment will go to interest?

I = P x r/12

• $1,634.17

• $1,147.57

• $916.67

• $717.50

Angela has a monthly gross income of $3,000 and her expenses are $1,200. What is her back-end ratio?

Back-end ratio = All monthly expenses/Monthly gross income.

• 25%

• 30%

• 40%

• 45%

When Jill and Jack bought their house, their property taxes were $3,630 annually. After 8 years, their property taxes are now $4,065.60. What percent increase is this (to the nearest whole percent)?

percent of increase = amount of increase/original amount x 100.

• 10%

• 12%

• 15%

• 20%

Nina owns a condominium where she paid $2,340 in maintenance fees this year. If her property taxes are 18% of this amount, how much did Nina pay in property taxes?

• $187.20

• $234.00

• $414.00

• $421.20

Craig and Tammy recently sold their home for $225,000. Their loan balance is $135,680. What is their equity before paying seller's expenses?

• $89,320

• 90,000

• $135,680

• $350,680

Garrett and Erin are borrowing $170,000 to purchase a new home. They have been approved for a 30-year loan with an interest rate of 5.75%. What will be their monthly payment?

• $965.24

• $990.00

• $992.07

• $1,087.33

Ben and Jane have been approved for a $220,000 loan, 30-year mortgage with an APR of 5.82%. Their monthly payment is $1,293.66. What is the total interest they will pay over 30 years?

Total Interest = monthly payment x 12 x years - principal.

• 25,717.60

• $38,809.80

• 245,717.60

• $465,717.60