# 2024 – 1 Determine the difference between the monthly payments on a 120 000 home at 6 1 2 and at 8 for 25

MCQ – 2024

1 Determine the difference between the monthly payments on a $120,000 home at 6 1∕2% and at 8% for 25 years.

A $115.20

B $91.12

C $81.12

D $151.02

3 At the beginning of each year for 14 years, Sherry Kardell invested $400 that earns 10% annually What is the future value of Sherry’s account in 14 years?

A $13,100

B $14,000

C $12,709

D $12,309

4 Ted Williams made deposits of $500 at the end of each year for eight years. The rate is 8% compounded annually. Calculate the value of Ted’s annuity at the end of eight years.

A $4,318.30

B $5,318.30

C $2,873.30

D $2,837.03

5 With a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?

A $54,576

B $50,236.80

C $5,023.68

D 545.76

6 Joe Sullivan invests $9,000 at the end of each year for 20 years. The rate of interest Joe gets is 8% annually. Determine the final value of Joe’s investment at the end of the 20th year on this ordinary annuity.

A $88,362.90

B $411,858.00

C $411,588.00

D $88,632.90

7 At the beginning of each year Bill Ross invests $1,400 semiannually at 8% for nine yrs determine the cash value of the annuity due at the end of the ninth year.

A $37,399.68

B $38,739.68

C $37,339.68

D $37,939.86

8 Open credit in a revolving charge plan results in

A the U.S. Rule being applied to each purchase

B as many charged purchases till credit limit is reached

C as many cash purchases till credit limit is reached

D one purchase per month

9 Cost of merchandise sold equals beginning inventory

A plus net purchases minus ending inventory

B plus net purchases plus ending inventory

C minus net purchases plus ending inventory

D minus net purchases minus ending inventory

10 In using horizontal analysis comparative reports are

A often used

B never used

C infrequently used

D always used

11 In an ordinary annuity, when does the interest on a yearly investment start building interest?

A At the beginning of the first period

B After the second period ends

C During the first period

D At the end of the first period

12 Given a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?

A $54,576

B $5,023.68

C $545.76

D $50,236.80

13 Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are $45,000 Assuming there are no prepaid expenses the dollar amt of merchandise inventory is

A $90,450.

B $90,540.

C $28,800.

D $28,008.

14 Megan Mei is charged 2 points on a $120,000 loan at the time of closing. The original price of the home before the down payment was $140,000. How much do the points in dollars cost Megan?

A $2,400

B $2,800

C $4,200

D $8,200

15 Dan Miller bought a new Toyota truck for $28,000. Dan made a down payment of $6,000 and paid $390 monthly for 70 months. What is the total finance charge?

A $11,300

B $5,300

C $27,300

D $13,300

16 Use the following information to answer the question:

Cost of car: $26,000

Residual value: $6,000

Life: 5 years Using the given information, determine the depreciation expense for the first year straight-line method?

A $4,000

B $5,200

C $4,400

D $6,000

17 Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Jay Corporation’s stockholders’ equity to the nearest dollar is

A $14,720.

B $140,720.

C $1,407,200.

D $140,720,000

19 In calculating the daily balance, cash advances are

A sometimes added in.

B always subtracted out.

C sometimes subtracted out.

D always added in.

20 Abe Aster bought a new split level for $200,000. Abe put down 30%. Assuming a rate of 1 11∕2% on a 30-year mortgage, determine Abes monthly payment.

A $1,982.00

B $1,387.40 ß Note I have used 11.5% interest rate.

C $1,423.80

D $1,367.80

21 Connie made deposits of $2000 at the beginning of each year for four years. The rate she earned is 5% annually. What is the value of Connies account in four years?

A $8,260.00

B $11,051.00

C $9,051.20

D $8,260.20

22 When are annuity due payments made?

A Yearly

B At the end of the period

C At the beginning of the period

D Monthly

23. Ben Brown bought a home for $225,000. He put down 20% The mortgage is at 6 ½% for 30 years determine his monthly payment.

A $1,319.04

B $1,139.40

C $1,319.40

D $1,216.80

24 Dick Hercher bought a home in Homewood, Illinois for $230,000. He put down 20% and obtained a mortgage for 25 years at 8% What is the total interest cost of the loan?

A $327,372.80

B $242,411.00

C $184,000.00

D $242,144.00

25. John Sullivan bought a new Brunswick boat for $17,000. He made a $2,500 down payment on it The banks loan was for 60 months and the finance charges totaled $4,900. What is his monthly payment?

A $332.33

B $313.33

C $323.33

D $232.33

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