Math Questions
Mr. Fixit wanted to remodel his business, so he got a loan of $4,300, at a rate
of 6 percent interest. He paid this loan off in 8 months. Knowing this, what was
the total amount of interest Mr. Fixit paid?
$358 $21.50 $172 $258 - correct answer ✔172
To figure this problem, first take the loan amount multiplied by the interest rate
for the annual interest ($258). Then divide this amount by 12 (as in months
per year) to find out the interest paid per month. Multiply that total ($21.50) by
8 (months) for the total interest paid of $172.
A small studio sold for $16,350, which was a 9% appreciation over the original
cost of the studio. What was the original cost of the studio?
$17,915.50 $16,000 $14,875.50 $15,000.00 - correct answer ✔$15,000.00
This problem tells you that the original cost of the studio plus a 9%
appreciation equals $16,350:Cost (100%) + Appreciation (9%) = $16,350So
here's another way to look at it- the studio sold for 109% of its original
cost:109% = $16,350To find out what 100% of this number is, divide $16,350
by 1.09 (109%):$16,350 ÷ 1.09 = $15,000
Wayne Goodspeed falls in love with a house and buys it for 5% more than the
appraised value. He secures a loan for $220,000, which represents the
appraised value minus a 10% down payment. What was the purchase price,
and how much did Wayne have to come up with in cash?
,$256,666 / $36,666
$244,444 / $36,666
$256,666 / $44,444
$244,444 / $44,444 - correct answer ✔$256,666 / $36,666
The purchase price is $256,666. The total amount in cash Wayne needed to
come up with is $36,666.To figure the amount, do the following:
Step 1, find the appraised value - $220,000 divided by 90% = 244,444.44
Step 2, find the purchase price - $244,444.44 X 105% = $256,666.67
Step 3, find the down payment - $256,666.67 minus $220,000 = $36,666
While it's not recommended to pay more than the appraised value of a home,
it can be done as long as the buyer doesn't mind coming up with extra cash.
If an investment valued at $350,000 returns 12 percent annually, then what is
the amount of income produced by this investment?
$42,000 $39,200 $3,920 $4,200 - correct answer ✔$42,000
$350,000 x 12% = $42,000
Sage obtained a loan in the amount of $20,000 and paid the mortgage lender
4 discount points and an origination fee of 2%. If the payments on the loan
were $163.00 per month including 8% interest, and the average balance over
a 5-year period was $18,500, the gross amount earned by the lender over
those 5 years was most nearly:
, $5200. $7400. $9300. $8600. - correct answer ✔$8600.
$20,000 X 4% = $800 in points
$20,000 X 2% = $400 in origination fee
$18,500 X 8% = $1480 annual interest X 5 years = $7400.
Total of these three amounts is $8600
The reciprocal of 8% is:
12.5 .125 1250 125 - correct answer ✔12.5
8% is equivalent to .08
.08 is equal to the fraction 8⁄100
The opposite of 8⁄100 is 100⁄8
100 divided by 8 = 12.5
A homeowner sold his house for $23,000. This selling price represented a
15% profit over what he had originally paid for the house. What was the
original price of the home?
$2,000 $25,000 $20,000 $30,000 - correct answer ✔$20,000
100% + 15% = 115%
$23,000 divided by 1.15 = $20,000
