Question

 

1) Melissa works as a biller for a small medical company and has just received her paycheck.

Her gross earnings were: 4300, with $900 deducted for Federal & State taxes, $175 deducted for medical insurance premiums, and $50 for disability insurance.

What is Melissa’s disposable income? ______________________

What is Melissa’s discretionary Income? ______________________

2) Using the information in questions 2, if Melissa also paid $1000 in rent, $100 for electric & gas, $50 in groceries, $150 for two pairs of shoes, and $50 on a video game as a gift for her boyfriend’s birthday, and left the rest in her savings account.

What is Melissa’s discretionary income? ________________________

How much does Melissa have left in discretionary income after paying her expenses? __________________

3) The amount of money loaned (whether it be the bank lending you money for a mortgage or you buying a bond) is called: ______________________

4) Bank of NY is short 20 million to meet its reserve requirement. To cover, Bank of NY borrows the money from Chase bank at what type of interest rate? ____________________________________

5) When a consumer gets a loan from a bank, the benchmark interest rate charged to them is called the ___________________________ rate.

6) Mohammed and Vanessa are both taking out student loans to complete their Ph. D in Business. They both go to TD Bank to apply for a loan. Mohammed has a credit rating of 800, while Vanessa has a credit rating of 650. Who would get the lower interest rate? _________________ Why? _____________________________________________________________________________________

7) Madalena borrows $300,000 from TD Bank at an annual interest rate of 8%. What is the amount of interest she will pay per year??

8) Jose has a 25,000 loan with a 5% annual interest rate, with a payment due April 1 st. What is the interest amount due on the loan?

Answer 1