A variable rate mortgage means:

Sally Ray borrowed $38,000 to buy a new Hummer. Assuming an interest charge of $4,100, what will be her monthly payment if she takes 25 months to repay the loan? Assume the loan is repaid in equal payments.

Tom Burke bought a home in Virginia for $139,000. He puts down 30 percent and obtains a mortgage for 25 years at 12 percent. The portion of the 1st payment that covers interest is:  (Solve using the financial calculator. Select the best answer.)

 2/10, n/30 means the credit period is 30 days from end of discount period.

Ted Williams made deposits of $500 at end of each year for eight years The rate is 8 percent compounded annually. The value of Ted’s annuity at the end of eight years is: (Solve using the financial calculator. Select the best answer.)

 Jill Ley took out a loan to pay for her child’s education for $60,000. The loan would be repaid at the end of 8 years in one payment with an interest of 6 percent. The total amount Jill has to pay back at the end of the loan is:

A sinking fund: 

A sinking fund: 

The value of $60 deposited in a bank for six years at a rate of 10 percent compounded annually is:  (Solve using the financial calculator. Select the best answer.)

The portion is equaled to the base divided by the rate.