You can find a sample final exam at the link below.
Sample Final Exam
Tuesday, November 24, 2015
Thursday, November 19, 2015
Sunday, November 15, 2015
November 16 - 20: Financial Mathematics
This week we will be finishing up our unit on Financial Mathematics. We will discuss paying ahead on your amortized loan payments on Monday. Our exam over this unit will be on Friday and we will review on Wednesday. Please make sure that you print off the review and work on it before class on Wednesday so that we can maximize our time together in class to make sure that all of your questions are answered before the exam.
For this week's blog, instead of doing the five fill-in-the-blanks, please choose one of the prompts below to write 5-6 paragraphs responding to the prompt. The blog will be due by Sunday, November 29.
1. Research Adjustable Rate Mortgages (ARMS). What is an ARM? How can they vary? Explain what is meant by a) the index; b) the margin; c) No-Doc/Low-Doc loans; d) interest rate caps; e) periodic adjustment caps; f) lifetime caps; g) payment caps; and h) types of ARMS. Discuss several cautions related to ARMS. How did ARMS contribute to the housing crisis? The following site is a good resource: http://files.consumerfinance.gov/f/201204_CFPB_ARMs-brochure.pdf
2. Determine the average salary for someone in the career you hope to have after graduation. Based on this salary, how expensive a house could you afford to purchase? Locate 2 house listings in an area that you would like to live in using Zillow.com, trulia.com, or realtor.com. For each of these houses, describe the listing and sale price, assume that you will make a 20% down payment, and locate a current loan rate for a 30 year mortgage. How much would your monthly payment be for each house? Create an amortization schedule for the first four months of payments for each house. Using the mortgage calculator at bankrate.com, investigate ways that you could shorten the length of your mortgage by making additional monthly payments, yearly payments or one-time payments. Report on your findings.
For this week's blog, instead of doing the five fill-in-the-blanks, please choose one of the prompts below to write 5-6 paragraphs responding to the prompt. The blog will be due by Sunday, November 29.
1. Research Adjustable Rate Mortgages (ARMS). What is an ARM? How can they vary? Explain what is meant by a) the index; b) the margin; c) No-Doc/Low-Doc loans; d) interest rate caps; e) periodic adjustment caps; f) lifetime caps; g) payment caps; and h) types of ARMS. Discuss several cautions related to ARMS. How did ARMS contribute to the housing crisis? The following site is a good resource: http://files.consumerfinance.gov/f/201204_CFPB_ARMs-brochure.pdf
2. Determine the average salary for someone in the career you hope to have after graduation. Based on this salary, how expensive a house could you afford to purchase? Locate 2 house listings in an area that you would like to live in using Zillow.com, trulia.com, or realtor.com. For each of these houses, describe the listing and sale price, assume that you will make a 20% down payment, and locate a current loan rate for a 30 year mortgage. How much would your monthly payment be for each house? Create an amortization schedule for the first four months of payments for each house. Using the mortgage calculator at bankrate.com, investigate ways that you could shorten the length of your mortgage by making additional monthly payments, yearly payments or one-time payments. Report on your findings.
Saturday, November 14, 2015
Financial Math Review
Remember our exam over the financial math section will be on Friday, November 20. Please work the review below before class on Wednesday and be prepared to ask any questions that you have over the material.
Financial Math Review
Financial Math Review
Tuesday, November 3, 2015
Mid-Semester Survey
The evaluations below are anonymous. You will be asked to log in to ensure that each user only fills out the survey once, but your log in information will not be recorded. Please take a moment to follow the link and fill the evaluation out.
Mid-Semester Survey
Mid-Semester Survey
Nov 2 - 6: Financial Mathematics
This week we will be continuing with financial mathematics. We will start the week with consumer loans and finish off the week with annuities. There are a lot of formulas to keep track of in this unit; I would recommend that you create a formula sheet for yourself to remind you of each one.
For your blog posts this week, in addition to answering the five fill-in-the-blanks, use the credit card calculator available at bankrate.com (full link below) to answer the following questions:
(1) Suppose you have a credit card balance of $5500 with a rate of 18% and a minimum payment of 4%. If you make only the minimum payment, how long will it take for you to pay off the balance? How much will you end up paying in interest?
(2) Suppose you use your credit card to purchase bedroom furniture at a total cost of $4395. If your card has an annual rate of 16.9% and a minimum payment of 3%, determine how long it will take to pay off the balance for the bedroom furniture. How much will you pay in interest?
Bankrate Credit Card Minimum Payment Calculator
Also, this week, please fill out the mid-semester evaluation, linked in the next blog post.
Challenge Problem: Find a credit card application online. Provide the link to your card. Describe the application. Your description you should include the answers to the following questions. What interest rate(s) are they offering? Does the card offer any initial benefits, such as an introductory APR? Does the card offer any rewards? If so, what are they? What is the minimum payment required each month? Are there any fees associated with the card? Do you think the card is worth getting?
After finding all of this information, find a "big ticket" item that you would like to purchase. (For example, a new TV.) If you put this item on your credit card, use the minimum payment calculator t determine how long it would take to pay off the item if you made only the minimum payments. How much would you end up paying in interest?
For your blog posts this week, in addition to answering the five fill-in-the-blanks, use the credit card calculator available at bankrate.com (full link below) to answer the following questions:
(1) Suppose you have a credit card balance of $5500 with a rate of 18% and a minimum payment of 4%. If you make only the minimum payment, how long will it take for you to pay off the balance? How much will you end up paying in interest?
(2) Suppose you use your credit card to purchase bedroom furniture at a total cost of $4395. If your card has an annual rate of 16.9% and a minimum payment of 3%, determine how long it will take to pay off the balance for the bedroom furniture. How much will you pay in interest?
Bankrate Credit Card Minimum Payment Calculator
Also, this week, please fill out the mid-semester evaluation, linked in the next blog post.
Challenge Problem: Find a credit card application online. Provide the link to your card. Describe the application. Your description you should include the answers to the following questions. What interest rate(s) are they offering? Does the card offer any initial benefits, such as an introductory APR? Does the card offer any rewards? If so, what are they? What is the minimum payment required each month? Are there any fees associated with the card? Do you think the card is worth getting?
After finding all of this information, find a "big ticket" item that you would like to purchase. (For example, a new TV.) If you put this item on your credit card, use the minimum payment calculator t determine how long it would take to pay off the item if you made only the minimum payments. How much would you end up paying in interest?
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