Question 1
The table shows the expense of operating and owning four selected cars, by average costs per mile. Use the appropriate information in the table to solve the problem.
Average Annual Costs of Owning and Operating a Car for Selected Cars
If you drive 10,000 miles per year, by how much does the total annual expense for Car A exceed that of Car C over five years?
◦ $15,900
◦ $20,500
◦ $4100
◦ $79,500
Question 2
Use PMT = 
to determine the regular payment amount, rounded to the nearest dollar.
The price of a home is $250,000. The bank requires a 15% down payment and two points at the time of closing. The cost of the home is financed with a 20-year fixed-rate mortgage at 6.5%.
a. Find the required down payment.
b. Find the amount of the mortgage.
c. How much must be paid for the two points at closing?
d. Find the total cost of interest over 20 years, to the nearest dollar.
◦ a. down payment: $37,500
b. amount of mortgage: $212,500
c. points paid at closing: $5000
d. total cost of interest over 20 years: $167,742
◦ a. down payment: $37,500
b. amount of mortgage: $212,500
c. points paid at closing: $4250
d. total cost of interest over 20 years: $167,742
◦ a. down payment: $37,500
b. amount of mortgage: $212,500
c. points paid at closing: $4250
d. total cost of interest over 20 years: $380,242
◦ a. down payment: $37,500
b. amount of mortgage: $212,500
c. points paid at closing: $5000
d. total cost of interest over 20 years: $130,242
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