Name: Graded Assignment Date: Math | Graded Assignment | Unit Test, Part 2 | Budgeting Unit Test, Part 2: Budgeting Answer the questions. When you have finished, submit this assignment to your teacher by the due date for full credit. Remember, unless noted otherwise, all monetary solutions should be rounded to the nearest cent. Total score: of 21 points (Score for Question 1: of 10 points) 1. Victor earns a gross annual income of $93,571 and is buying a home for $196,300. He is making a 15% down payment and financing the rest with a 30-year loan at 4.25% interest. Monthly Mortgage Payment Per $1000 Borrowed Rate 15-year loan 20-year loan 25-year loan 30-year loan 3.00% 6.906 5.546 4.742 4.216 3.25% 7.027 5.672 4.873 4.352 3.50% 7.149 5.800 5.006 4.490 3.75% 7.272 5.929 5.141 4.631 4.00% 7.397 6.060 5.278 4.774 4.25% 7.523 6.192 5.417 4.919 4.50% 7.650 6.326 5.558 5.067 4.75% 7.778 6.462 5.701 5.216 5.00% 7.908 6.600 5.846 5.368 Answer: (a) What is the mortgage amount he will borrow? Show your work. (1 point for correct response, 1 point for showing work) (b) Can he afford this mortgage? Justify your response. (1 point for correct response, 1 point for justification) (c) What will his monthly mortgage payment be? Show your work. (1 point for correct response, 1 point for showing work) (d) What will his total payment for the house be? Show your work. (1 point for correct response, 1 point for showing work) (e) What is the amount of interest he will pay? Show your work. (1 point for correct response, 1 point for showing work) © 2015 K12 Inc. All rights reserved. Copying or distributing without K12's written consent is prohibited. Page 1 of 2 (Score for Question 2: of 11 points) Math | Graded Assignment | Unit Test, Part 2 | Budgeting 2. Rhianna is buying a car for $18,300. She has a $1500 trade-in allowance and will make a $2000 down payment. She will finance the rest with a 4-year auto loan at 2.8% APR. Monthly Car Loan Payment Per $1000 Borrowed Rate 24-month loan 36-month loan 48-month loan 60-month loan 2.5% 42.760 28.861 21.914 17.747 2.6% 42.805 28.905 21.958 17.791 2.7% 42.849 28.949 22.002 17.836 2.8% 42.893 28.993 22.046 17.880 2.9% 42.937 29.037 22.090 17.924 3.0% 42.981 29.081 21.134 17.969 Liability Insurance, Bodily Injury Amount Premium 25/100 $220 50/100 $310 100/300 $450 Liability Insurance, Property Damage Amount Premium 25 $175 50 $245 100 $375 Collision & Comprehensive Premiums Rating Factor Deductible Collision Comprehensive Age Male Female $100 $215 $129 17-20 3.0 1.45 $250 $185 $102 21-24 2.15 1.2 $500 $148 $85 25-29 1.55 1.0 Answer: (a) How much money will she borrow in an auto loan? Show your work. (1 point for showing work, 1 point for correct response) (b) What will her monthly auto payment be? Show your work. (1 point for showing work, 1 point for correct response) (c) What is the total amount of interest she will pay? Show your work. (1 point for showing work, 1 point for correct response) (d) What is her total payment for the car? Show your work. (1 point for showing work, 1 point for correct response) (e) Rhianna is 19 years old. She buys 100/300/50 liability insurance, and collision and comprehensive insurance, each with $500 deductibles. What is her total annual premium? Show your work. (2 points for showing work, 1 point for correct response) © 2015 K12 Inc. All rights reserved. Copying or distributing without K12's written consent is prohibited. Page 2 of 2