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Graduated payments, sales tax, mill rates & FV of payments

1.Graduated payments result in the borrower paying:

a.more at beginning of mortgage.
b.less at beginning of mortgage.
c.less at end of mortgage.
d.the mortgage at 1/2 the standard rate.
e.none of these.

2.Sales tax rates are:

a.the same in all states.
b.different in many states.
c.exempt from all businesses.
d.not used by retailers, only wholesalers.
e.none of these.

3.The difference between the monthly payments on a $120,000 home at 6 ½ percent versus 8% for 25 years is: (Use the table in the handbook)

a.$81.12
b.$151.02
c.$115.20
d.$91.12
e.None of these

4.The County of Blue needs $800,000 from property tax to meet its budget requirements. The total value of assessed property in Blue is $140,000,000. The tax rate of Blue in mills to nearest hundredth is_________.
(Be sure to round tax rate to nearest hundred thousandths before converting to mills)

a.5.74
b.5.724
c.571.24
c.17.50
e.none of the above

5.Jen Rich bought a new Toyota for $18,200 that included a 5 percent sales tax. The actual cost of the car (round to nearest dollar) before the tax is ___________.

a.$17,334.00
b.$17,333.00
c.$17,335.00
d.$19,110.00
e.None of these

6.Joe Jay purchases a new colonial home for $260,000 putting down 20 percent. He decided to use Loyal Bank for his mortgage. They were offering 6 1/2 % for 25 year mortgage. The principal after the 1st payment had a balance outstanding of ________________.

a.$207,270.95
b.$207,720.59
c.$207,720.95
d.$207,270.95
e.none of these

7.A home with a market value of $240,000 is assessed at 40 percent of the market value. The assessed value is ___________.

a.$144,000.00
b.$96,000.00
c.$69,000.00
d.$9,600.00
e.None of these

8.Ben Brown bought a home for $225,000. He put down 20 percent. The mortgage is at 6 ½ percent for 30 years. By using the table in the handbook, his monthly payment is ___________.

a.$1,319.04
b.$1,319.40
c.$1,216.80
d.$1,139.40
e.None of these

9.A premium for fire insurance could be lower than someone else's if the:

a.building is wood.
b.roof is not fire resistant.
c.building is close to a fire hydrant.
d.goods within the store are flammable.
e.none of these.

10.The one named in the policy to receive the insurance proceeds in the case of death of the one taking out the policy is the:

a.insured.
b.insurer.
c.beneficiary.
d.both insurance and beneficiary.
e.none of these.

Solution Summary

The solution answer multiple choice question of Graduated payments, sales tax, mill rates, FV of payments, assessed value.

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