George and Martha Washington are purchasing a house in Elk G…

George and Martha Washington are purchasing a house in Elk Grove financed with an adjustable-rate mortgage. The margin on the loan is 3.75%, and the rate cap is 6.25% over the life of the loan. The current index rate is 3.90%. What is the calculated initial interest rate of the ARM?

 Yogi’s Construction has a $100,000 line of credit at the Je…

 Yogi’s Construction has a $100,000 line of credit at the Jellystone Bank. The annual percentage rate is the current prime rate plus 3%. The balance on October 1 was $22,500. On October 10, Yogi borrowed $15,000 to pay for a shipment of lumber and on October 20 he borrowed another $32,500 for equipment repairs. On October 25, Yogi made a $30,000 payment on the account. The billing cycle for October has 31 days. The current prime rate is 6%. Hint: Use the average daily method to determine the finance Charge! a) _____________What is the finance charge on the account?  

David Partridge bought a saddle from Linville Western Gear w…

David Partridge bought a saddle from Linville Western Gear with an 8.5% add-on interest installment loan. The purchase price of the saddle was $1,750.00. The loan required a 15% down payment and equal monthly payments for 36 months. a) ____________What is the total deferred payment price of the saddle?  

Rob Davis is thinking about building an addition to his home…

Rob Davis is thinking about building an addition to his home in Rio Linda. The house was recently appraised at $239,500, and the balance on his existing first mortgage is $89,950. If Rob’s bank is willing to loan 75% of the appraised value. What is the equity in the house?