Exercise 13

1. Suppose Antonio Scarletti purchases a home and secures a loan of $223,000 for 25 years at
an annual interest rate of 7%.
a. Find the monthly mortgage payment.
b. What is the total of the payments over the life of the loan?
c. Find the amount of interest paid on the loan over the 25 years.

2. Find the mortgage payment for a 25-year loan of $129,000 at an annual interest rate of
7.75%.
3. Find the mortgage payment for a 30-year loan of $245,000 at an annual interest rate of
6.5%.
4. Find the mortgage payment for a 15-year loan of $223,500 at an annual interest rate of
8.15%.
5. Find the mortgage payment for a 20-year loan of $149,900 at an annual interest rate of
8.5%.
6. Leigh King purchased a townhouse and obtained a 30-year loan of $152,000 at an
annual interest rate of 7.75%.
a. What is the mortgage payment?
b. What is the total of the payments over the life of the loan?
c. Find the amount of interest paid on the mortgage loan over the 30 years.
7. Richard Miyashiro purchased a condominium and obtained a 25-year loan of $199,000
at an annual interest rate of 8.25%.
a. What is the mortgage payment?
b. What is the total of the payments over the life of the loan?
c. Find the amount of interest paid on the mortgage loan over the 25 years.
Exercise 14

1. You purchase a home for $295,000. You obtain an30-year conventional mortgage at 6.75%
after paying a down payment of 25% of the purchase price. Of the first month’s payment,
how much is interest and how much is applied toward the principal?
=0.25(295,00)
=73,750
THE DOWN PAYMENT IS $73,750
295,000-73,750
=221,250
THE MORTGAGE IS $221.250.

=221,250 0.0675/12
1-(1=0.0675/12) -360

=1,435.02
THE MONTHLY PAYMENT IS $1,43502.

2. Leona Jefferson purchased a home and obtained a 30-year loan of $437,750 at an annual
interest rate of 7.5%. Find the amount of interest paid on the loan over the 30 years.
3. Marcel Thiessen purchased a home for $208,500 and obtained a 15-year, fixed-rate
mortgage at 9% after paying a down payment of 10%. Of the first month’s mortgage
payment, how much is interest and how much is applied to the principal?
4. You purchase a condominium for $173,000. You obtain a 30-year, fixed-rate mortgage loan
at 12% after paying a down payment of 25%. Of the second month’s mortgage payment,
how much is interest and how much is applied to the principal?
5. Principal and Interest You purchase a cottage for $185,000. You obtain a 20-year, fixed-rate
mortgage loan at 12.5% after paying a down payment of 30%. Of the second month’s
mortgage payment, how much is interest and how much is applied to the principal?
 RESULT

6. Fay Nguyen purchased a second home for $183,000 and obtained a 25-year, fixed-rate
mortgage loan at 9.25% after paying a down payment of 30%. Of the second month’s
mortgage payment, how much is interest and how much is applied to the principal?
Exercise 15

1. Ava Rivera has a monthly mortgage payment of $846.82 on her condo. After making
payments for 4 years, she decides to sell the condo. If she has a 25-year loan at an annual
interest rate of 6.9%, what is the payoff for the mortgage?
2. After making payments of $913.10 for 6 years on your 30-year loan at 8.5%, you decide to
sell your home. What is the loan payoff ?
3. Christopher Chamberlain has a 25-year mortgage loan at an annual interest rate of 7.75%.
After making payments of $1011.56 for 31 2 years, Christopher decides to sell his home.
What is the loan payoff ?
4. Iris Chung has a 15-year mortgage loan at an annual interest rate of 7.25%. After making
payments of $672.39 for 4 years, Iris decides to sell her home. What is the loan payoff ?
5. After making payments of $736.98 for 10 years on your 30-year loan at 6.75%, you decide
to sell your home. What is the loan payoff ?
Exercise 16
1. A homeowner has a monthly mortgage payment of $1492.89, an annual property tax bill of
$2332.80, and an annual fire insurance premium of $450. Find the total monthly payment for
the mortgage, property tax bill, and fire insurance.
=2332.80 / r2
= 194.4
THE MONTHLY PROPERTY TAX BILL IS $194.4
=450/12
=37.5
THE MONTHLY FIRE INSURANCE BILL IS $37.5.
1492.89 = 194.4 = 37.5
=1,724.79
THE MONTHLY PAYMENT FOR THE MORTGAGE PROPERTY TAX AND FIRE INSURANCE IS
$1,724.79.
2. A homeowner has a mortgage payment of $996.60, an annual property tax bill
of $594, and an annual fire insurance premium of $300. Find the total monthly payment for
the mortgage, property tax, and fire insurance.
3. Malcolm Rothschild has a mortgage payment of $1753.46, an annual property tax bill of
$1023, and an annual fire insurance premium of $780. Find the total monthly payment for
the mortgage, property tax, and fire insurance.
4. Baka Onegin obtains a 25-year mortgage loan of $259,500 at an annual interest rate of
7.15%. Her annual property tax bill is $1320 and her annual fire insurance premium is $642.
Find the total monthly payment for the mortgage, property tax, and fire insurance.
2

5. Suppose you obtain a 20-year mortgage loan of $198,000 at an annual interest rate of 8.4%.
The annual property tax bill is $972 and the annual fire insurance premium is $486. Find the
total monthly payment for the mortgage, property tax, and fire insurance.
2
Exercise: 17

1. A mutual fund has $750 million worth of stock, $750,000 in cash, and $1,500,000 in other
assets. The fund’s total liabilities amount to $1,500,000. There are 20 million shares
outstanding. You invest $10,000 in this fund.
a. Calculate the NAV.
b. How many shares will you purchase?

NAV= 750,000,000+750,000,000+1,500,000-1,500,000
20,000,000
=
1500,000,000
20,000,000
=$75
R= 10,000
75
=133.33 SHARES
133.33 SHARES CAN BE BOUGHT WITH INVESTMENT OF $10,000

2. A mutual fund has total assets of $25,000,000 and total liabilities of $250,000. There are
1,500,000 shares outstanding. Find the net asset value of the mutual fund.
3. A mutual fund has total assets of $15 million and total liabilities of $1 million. There are 2
million shares outstanding. You invest $5000 in this fund. How many shares will you
purchase?

4. A mutual fund has total assets of $12million and total liabilities of $2 million. There are 1
million shares outstanding. You invest $2500 in this fund. How many shares will you
purchase?
5. A mutual fund has $500 million worth of stock, $500,000 in cash, and $1 million in other
assets. The fund’s total liabilities amount to $2 million. There are 10 million shares
outstanding. You invest $12,000 in this fund. How many shares will you purchase?
6. A mutual fund has $250 million worth of stock, $10 million worth of bonds, and $1 million in
cash. The fund’s total liabilities amount to $1 million. There are 13 million shares
outstanding. You invest $10,000 in this fund. How many shares will you purchase?
Exercise 18.

1. Find the current price per share of AAMDX fund.

ANSWER: $10.50
2. What was yesterday’s price per share of AAMDX fund?
SOLUTION: $10.50-$0.05
=$10-45
ANSWER $10.45
3. What was the price per share (NAV) of AAMDX at the beginning of the year?
Beginning of= Current NAV
Year NAV 100+ YRO % return
$10.50 $10.50 $10.0095328885
100% +4.9% 1+ 0.049
The beginning of year NAV- $10.00
4. What was the price per share (NAV) of MLSAX at the beginning of the year?
Beginning of= Current NAV
Year NAV 100+ YRO % return
$11.16 $11.16 $10.9950738916
100% + 1.5% 1+0.0015
The beginning of year NAV- $11.00

5. Use Table 1 to find the sales charge and the sales charge percent for one share of AFMMX
mutual fund stock if the stock was offered at $11.52.
Soulution:
The NAV is 10.98 and the offering selling price of the stock is $11.52
Mutual fund sales charges = offer price – net asset value
=$ 11.52 - $10.98 = $0.54
Formula: sale charge = sale charge x 100%
Percent net asset value
$0.54 100% = 0.04918032787 (100%) = 4.92%
10.98
6. Use Table 1 to find the sales charge and the sales charge percent for one share of LPEVX
mutual fund stock if the stock was offered at $6.05.
The NAV is 5.82 and the offering selling price of the stock is $6.05
Mutual fund sales charges = offer price – net asset value
=$ 6.05 - $5.82 = $0.23
Formula: sale charge = sale charge x 100%
Percent net asset value
$0.23 100% = 0.03951890034 (100%) = 3.92%
5.82

Exercise 19

1. Calculate the ROI for 1,000 shares of a mutual fund purchased with an offer price of $12.73
per share if the shares were sold with a net asset value (NAV) of $14.52 per share and had
paid a dividend of $0.83 per share during ownership.
 Total proceeds from sale = 1,000 shares ($14.52) = $14,520

Additions = 1,000 shares ($0.83) = $830

Total cost of purchase = 1,000 shares ($12.73) = $12,730

Gain (or loss) on investment = ($14,520 + $830) - $12,730 = $2,620

ROI = $2,620
$12,730
=0.20581304006
=20.58%

2. Calculate the ROI for 1,500 shares of a mutual fund purchased with an offer price of $22.84
per share if the shares were sold with a net asset value (NAV) of $21.97 and had paid a
dividend of $0.21 per share during ownership.
Total proceeds from sale = 1,500 shares ($21.97) = $32,955

Additions = 1,500 shares ($0.21) = $315

Total cost of purchase = 1,500 shares ($22.84) = $34,260

Gain (or loss) on investment = ($32,955 + $315) - $34,260 = $-990

ROI = $990
$34,260
= -0.0288966725
=-28.90%
3. Calculate the ROI for 2,322.341 shares of a mutual fund purchased with an offer price of
$21.53 if the shares were sold with a net asset value (NAV) of $23.89 and had paid a
dividend of $1.78 per share during ownership.
Total proceeds from sale = 2,323.341 shares ($23.89) = $55,480.72679

Additions = 2,323.341 shares ($1.78) = $4,133.76698

Total cost of purchase = 2,323.341 shares ($21.53) = $50,000.00173

Gain (or loss) on investment = ($55,480.72649+$4,133.76698) - $50,000.00173=

$9,614.49174
ROI = $9,614.49174
$50,000.00173
=0.19228982815
=19.23%
4. Mary Wingard invested $20,000 in mutual funds with an offer price of $17.54 per share. The
shares were sold with a net asset value of $22.35 and had paid a dividend of $1.06 per share
during ownership. Calculate the ROI for this investment. (Hint: Divide the total invested by
the offer price to get the number of shares in the investment.)

Total proceeds from sale = $20,000 ($22.35) = ($84985458613) $447,000

Additions = $20,000 ($1.06) = $21,200

Total cost of purchase = $20,000 ($17.54) = $350,800

Gain (or loss) on investment = ($447,000 + $21,200) - $350,800

= $117,400

ROI = $117,400
$350,800
=0.334663626
=33.47%

Exercise 20

Perform the modular arithmetic.

Exercises 21
1. Saturday My birthday is (May 11, 2002)
2. Wednesday
3. Wednesday
4. Tuesday

Exercise 22
Determine the correct digit for the UPC.

Scrabble:

is the answer

Beethoven’s 9th symphony, DVD

is the answer
Determine the correct check digit for the UPC. 0-33317-20083-? (TI-84 Silver Edition
calculator
 

is the answer

Exercise 23

Determine whether the given credit card number is a valid number.

Determine whether the given credit card number is a valid number. 5164-
8295-1229-3674
 
Determine whether the given credit card number is a valid number. 6011-4988-1002-
6487

NOT VALID.

Exercise 24

I. Encode the message by using a cyclical alphabetic encrypting code that shifts the
message the stated number of positions.

15 positions: A STITCH IN TIME

II. Use a cyclical alphabetic encrypting code that shifts the letters the stated number of
positions to decode the encrypted message.

8 positions: VWJWLG QA XMZNMKB

EXERCISES 25

I. Evaluate each expression, where ⊕ and ⊖ indicate addition and subtraction, respectively,
using 12-hour clock.

1. 3 ⊕ 5
=3 ⊕ 5=8
2. 2 ⊖ 6
= 2 ⊖ 6=6

3. 11 ⊕ 3

4. 10 ⊖ 6
5. 3 ⊖ 8
6. 4 ⊖ 9
7. 5 ⊖ 5
8. 6 ⊕ 7
9. 8 ⊕ 8
10. 7 ⊕ 9

II. Determine whether the congruence is true or false

1. 5 ≡ 8 mod 3
5-8
3
=- - 3
3
=-1
=TRUE

2. 5 ≡ 20 mod 4
5-20/4 = 15/4
= -3.75
TRUE

3. 21 ≡ 45 mod 6
21-45/6 = -24/6
=4
FALSE

4. 88 ≡ 5 mod 9
88-5/9 = 83/9
9.22
FALSE

5. 100 ≡ 20 mod 8
100-20/8 = 80/8
=10
FALSE

6. 11 ≡ 15 mod 4
11-15/4 = -4/4
 = -1
TRUE

7. 7 ≡ 21 mod 3
7-21/3 = -14/3
= -4.66
TRUE

8. 18 ≡ 60 mod 7
18-60/7
= -6
TRUE

9. 72 ≡ 30 mod 5
72-30/5
=8.4
FALSE

10. 25 ≡ 85 mod 12
25-85/12
= -5
TRUE

III.
List 5 different natural number that are congruent to 8 modulo 6.

List 5 different natural numbers that are congruent to 10 modulo 4.

IV. Perform the modular arithmetic

1. (9 + 15) mod 7

2. (5 + 22) mod 8
 3.
IS THE ANSWER

4. (42 + 35) mod 3

5. (37 + 45) mod 12

6.
=

7. (12 + 8) mod 5

8. (19 - 6) mod 5
 9. (8 - 15) mod 12

10. (3 - 12) mod 4

11. (6 . 8) mod 9
12. (9 . 15) mod 8

V. Clocks and Calendars. Use modular arithmetic to determine each of the following.

1. Disregarding A.M or P.M, if its now 7 o’clock,

a. what time will it be 59 hours from now?
b. what time was it 62 hours ago?
2. Disregarding A.M or P.M, if its now 2 o’clock,
a. what time will it be 40 hours from now?
b. what time was it 34 hours ago
3. If today is Friday.
a. what day of the week will it be 115 days fromnow?
b. what day of the week is it 32 days ago?
4. If today is Wednesday.
a. what day of the week will it be 25 days fromnow?
b. what day of the week is it 81 days ago?
5. in 2010, April Fool’s Day(April 1) fell on a Thursday.On what day of the week will Apri Fool’s
Day Fall in 2021?

VI. Find all whole number solutions of the congruence equation.

1. ꭓ ≡ 10 MOD 3
2. ꭓ ≡ 12 MOD 5
3. 2ꭓ ≡ 12 MOD 5
 4. 3ꭓ ≡ 8 MOD 11
5. (2ꭓ + 1 ) ≡ 5 MOD 4
6. (3ꭓ + 1 ) ≡ 4 MOD 9
7. (2ꭓ + 3 ) ≡ 8 MOD 12
8. (2ꭓ + 2 ) ≡ 6 MOD 4
9. (5ꭓ + 4 ) ≡ 2 MOD 8
10. (4ꭓ + 3 ) ≡ 3 MOD 4

VII. Find the additive inverse and the multiplicative inverse, if it exists, of the given number.

1. 4 in modulo 9 arithmetic
2. 4 in modulo 5 arithmetic
3. 7 in modulo 10 arithmetic
4. 3 in modulo 8 arithmetic
5. 6 in modulo 15 arithmetic

VIII. Modular division can be performed by considering the related multiplication problem. For
instance, if 5 ÷ 7 = x, then x ° 7 = 5. Similarly, the quotient (5 ÷ 7) mod 8 is the solution to the
congruence equation x ° 7≡ 5 mod 8, which is 3. Find the given quotient.

1. (2 ÷ 7) mod 8
2. (4 ÷ 5) mod 8
3. (2 ÷ 3) mod 5
4. Verify that the division 5 ÷ 8 has no solution in modulo 8 arithmetic.
5. Verify that the division 4 ÷ 4 has more than one solution in modulo 10 arithmetic.