Applied Math

Section 10.1 - 10.4 Quiz

*DO NOT WRITE ON QUIZ. SHOW YOUR WORK ON SEPARATE PAPER.*
Standard/Skill: NCTM -6 Problem Solving
● Build new mathematical knowledge through problem solving
● Solve problems that arise in mathematics and other contexts
● Apply and adapt a variety of appropriate strategies to solve problems
● Monitor and reflect on the process of mathematical problem solving

Score 1.0 (55% - With help, partial success at score 2.0 content and score 3.0 content)

Mortgage loan Interest Closing costs Principal

Match one of the vocabulary words above with a definition below.

1) Fees paid at the time documents are signed transferring ownership of a home.
2) A loan whereby the lender has the right to sell the property if payments are not made.
3) The amount borrowed on a loan or put into an account, on which interest is based.
4) The amount of money paid for the use of a lender’s money.

Score 2.0 (70% - Simpler content)

Compute the mortgage loan amount.

5) Desiree Ramsey is considering the purchase of a new condominium for $132,600. A 25% down payment is
required. What is the amount of the mortgage loan needed to finance the purchase?

Score 3.0 (90% - Target learning goal)

Determine the monthly payment, total amount paid, and total interest charged.

6) Shannon and Glenn Shelton have applied for $83,900 mortgage loan at an annual interest rate of 6%. The
loan is for a period of 20 years and will be paid in equal monthly payments that include interest. What is the
monthly payment? What is the total amount paid? What is the total interest charged?

Score 4.0 (100% - More complex content)

Compute the allocation of monthly payment toward principal, interest, and the new principal.

7) Rowena Tinley obtained a 30-year $130,000 mortgage from State Bank. The interest rate is 9%. Her first
monthly payment is $1,090.96. Complete the table below.

Amount for Interest Amount for Principal New Principal

a) b) c)

Formulas & Tables

 Applied Math
Section 10.1 - 10.4 Quiz

Down Payment = Selling Price x % of down payment

Mortgage loan amount = Selling Price - Down payment

Monthly Payment = 𝑀𝑜𝑟𝑡𝑔𝑎𝑔𝑒 𝑎𝑚𝑜𝑢𝑛𝑡 ÷ $1,000 x monthly payment for a $1,000 loan

Amount Paid = Monthly payment x # of years x 12 months

Total Interest Charged = Amount paid - Mortgage amount

Interest = Principal x Rate x Time

Amount for Principal = Monthly payment - Interest

New Principal = Previous Balance - Amount for Principal