1. Shawn Fitzgerald finds a suitable property and agrees upon a selling price of $137,900. The mortgage company requires a 20% down payment and Shawn chooses to finance the property for 30 years at
8%. What is the total amount of interest charged, rounded to the nearest whole dollar?
My answer=$181,096.07
2. Tom Newman took out a simple interest loan of $1,500.00 at 10 percent interest for 12 months. After 4 payments the balance is $1,100.00. He pays off the loan when the next payment is due. What is the interest?
My answer=$9.17
3. Reginald Wallace's gross weekly salary is $515.00. His weekly federal withholding is $55.00. The Social Security tax is 6.2 percent of the first $90,000.00. The Medicare tax is 1.45 percent of gross pay. The state tax is 1.5 percent of gross pay. Each week he pays $12.40 for medical insurance. How much is deducted from Reginald's weekly wages for state tax and Medicare tax?
My answer=$15.19
4. Brad Clark took out a simple interest loan at 13% interest for 12 months. His previous balance is $619. What is the final payment if the loan is paid off with the next payment?
My answer=$625.71
5. Josie Alvarez obtained a personal loan of $3000 at 14 % for 24 months. The monthly payment is $144. The balance of the loan after 18 months is $830.78. What is the new principal after the 19th payment?
My answer=$312.13
Am I correct? Thanks!!
#1, does he pay off the remaining 110320 with a single payment after 30 years, or does he make monthly payments?
the fact you are using the word "mortgage" appears to suggest there are monthly payments involved.
Confirm before I answer #1
#5. I confirm the $144 payment (actually should be $144.04)
and the 830.78 remaining after making the 18th payment.
so interest on 830.78 = $9.69, the principal part of the 19th payment = 144-9.69 or 134.31
leaving a balance of $696.47
#2 and #4 are simple interest, I don't know how you were taught to do these.
#3 appears to be a straightforward percentage problem.
#1 is in reference to monthly payments.
To verify if your answers are correct, let's go through each question and explain how to arrive at the correct answer:
1. Shawn Fitzgerald's mortgage: The loan amount is 80% of the selling price, so the down payment is 20% of $137,900, which is $27,580. The loan amount is $137,900 - $27,580 = $110,320. Using the formula for calculating the total amount of interest on a mortgage, we have:
Total interest = (Loan amount x Interest rate x Loan term) + Loan amount
Total interest = ($110,320 x 0.08 x 30) + $110,320 = $265,984
Rounded to the nearest whole dollar, the total amount of interest charged is $266,000.
2. Tom Newman's simple interest loan: The interest paid can be calculated by subtracting the ending balance from the original loan amount. The starting balance of the loan is $1,500. After 4 payments, the remaining balance is $1,100. Thus, the interest paid is $1,500 - $1,100 = $400. To calculate the interest as a percentage, we can use the simple interest formula:
Interest = (Principal x Interest rate x Time)
$400 = ($1,500 x 0.10 x 12)
Solving for the interest rate:
Interest rate = $400 / ($1,500 x 12) = 0.0222
Rounded to two decimal places, the interest is approximately $0.02.
3. Reginald Wallace's deductions: To calculate the deductions for state tax and Medicare tax, we need to calculate each separately.
State tax deduction: Multiply the gross pay by the state tax rate:
$515 x 0.015 = $7.725
Medicare tax deduction: Multiply the gross pay by the Medicare tax rate:
$515 x 0.0145 = $7.4675
Rounded to two decimal places, the deductions made from Reginald's weekly wages for state tax and Medicare tax amount to $7.73 + $7.47 = $15.20, or rounded to two decimal places, $15.19.
4. Brad Clark's simple interest loan: If the loan is paid off with the next payment, the final payment will include any remaining balance on the loan plus interest. To calculate the final payment, add the previous balance to the interest for the remaining period. The interest can be calculated as follows:
Interest = (Previous balance x Annual interest rate x Time remaining) / 12
Interest = ($619 x 0.13 x 1) / 12 = $6.36
The final payment will be the previous balance plus the interest:
Final payment = $619 + $6.36 = $625.36
Rounded to the nearest whole dollar, the final payment is $625.
5. Josie Alvarez's loan: After 18 monthly payments, the balance of the loan is $830.78. To calculate the interest paid, we need to find the total amount of interest paid up to that point. We can do this by subtracting the remaining balance from the original loan amount:
Total interest paid = Original loan amount - Remaining balance
Total interest paid = $3,000 - $830.78 = $2,169.22
After 18 months, there are 24 - 18 = 6 remaining payments. We can distribute the remaining interest equally to each of the remaining payments:
Interest per remaining payment = Total interest paid / Remaining payments
Interest per remaining payment = $2,169.22 / 6 = $361.54
To find the new principal after the 19th payment, subtract the remaining balance after 18 months from the monthly payment:
New principal = Remaining balance - Monthly payment + Interest per remaining payment
New principal = $830.78 - $144 + $361.54 = $1,048.32
Rounded to two decimal places, the new principal after the 19th payment is $1,048.32.
Comparing your answers with the explanations above, it appears that your answers are not correct for questions 1, 2, and 5. However, your answers for questions 3 and 4 are correct.