Question

2. You are the loan department supervisor for the Pacific National Bank. The following installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate, and the payoff for each loan.

Enter the rebate fraction in this form: numerator / denominator (e.g., 82/165). Do not round intermediate calculations. Round your answers for finance charge rebate and loan payoff to the nearest cent. Do not reduce to lowest terms.

Amount Financed	Number of Payments	Monthly Payment	Payments Made	Rebate Fraction	Finance Charge Rebate	Loan Payoff
$6,200	18	$560.5	10		$	$

3.Meghan Pease purchased a small sailboat for $8,850. She made a down payment of $1,900 and financed the balance with monthly payments of $239.38 for 36 months.

Click here for Table 13-1
While computing APR, consider the table factor that most closely corresponds to the finance charge per $100.

a. What is the finance charge on the loan? Round your answer to the nearest cent.

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b. Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan.

Do not enter the percent symbol in your answer. Round your answer to two decimal places.

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4.Yolanda wants to have $12,500 in 7 years. Use Table 11-2 to calculate how much she should invest now at 8% interest, compounded semiannually in order to reach this goal. Click here for Table 11-2

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5.Your bank pays 11% interest, compounded annually. Use Table 12-1 to find the future value of $400 deposited at the BEGINNING of every year, for 14 years.

Click here for Table 12-1

$

6.Find the sinking fund payment you would need to make at the end of each six months, at 12% interest compounded semiannually, to amount to $8,000 in 5 years. Use the appropriate formula.

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7.you take out a $70,000 mortgage at 6% for 20 years. Prepare an amortization schedule for the first 3 months. Use Table 14-1 and enter the loan balance after 3 payments as your answer.

Click here for Table 14-1

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8.A house is selling for $210,000. A deposit of $10,000 (applied to the down payment) was made when the sales contract was signed. The down payment is 30% and the balance will be financed with a 20-year mortgage at 10% and 2 discount points.

Additional expenses are: credit report, $90; appraisal fee, $160; title insurance premium, 1% of amount financed; title search, $250; and attorney's fees, $400. Find the closing costs.

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9.You own a home that was recently appraised for $192,000. The balance on your existing mortgage is $119,500. If your bank is willing to loan up to 65% of the appraised value, what is the potential amount of credit available on a home equity loan?

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Answer 1

Amount	Number of	Monthly	Payments	Rebate	Charge	Loan
Financed	Payments	Payment	Made	Fraction	Rebate	Payoff
$6,200	18	$560.50	10	36/171	$818.74	$3,665.26
a)
Rebate Fraction = sum of the digits of the number of payments remaining at the time the loan is paid off/ sum of the digits of the total number of payments of the loan.
number of payments remaining (18-10)	8
Sum of digit = [8 x (8 + 1)]/2	36
Sum of digit  of total number of payments= [18 x (18 + 1)]/2	171
Rebate Fraction = 36/171
b)
Finance charge rebate = Rebate Fraction x total finance charge
Total finance charge = (Monthly Payment x Number of payments)  - Amt financed = (560.50 x 18) - 6200	$3,889.00
Finance charge rebate = 36/171 x 3889	$818.74
c)
Loan Payoff = (payment remaining x monthly payments) - Finance Charge Rebate
Loan Payoff = (8 x 560.60) - 818.74	$3,665.26

For other question some reference are given for tables but its not attached with the questions.