## MAT 120 Sample Quiz

1. What is the monthly payment on a 30-year mortgage of $125,000 if the interest
rate is 8.4% compounded monthly? How much interest would be paid over the life
of the mortgage? What is the annual percentage rate (APR) for this loan?
Complete the first three lines of the table showing the period by period details
of this loan.

2. At an interest rate of 7.2% compounded monthly, how large a mortgage
(25 years) could you get if you could afford to make monthly payments of
$400? How much interest would you pay over life of the mortgage? What is
the annual percentage rate (APR) for this loan? Complete the first three
lines of the table showing the period by period details of this
loan.

Answers