1. Which of the following financial statements would answer the question, "What did the company decide to use their profit for?"
a. Income statement
b. Statement of cash flows
c. Statement of retained earnings
d. Balance Sheet
2. You borrow $20,000 to purchase a small cottage. If your loan rate is 8.5% interest per year and you are paying it over 60 months what is your loan payment amount?
a. $520.43
b. $410.33
c. $626.25
d. $333.33
3. Your housing expense ratio, the percentage of your monthly income that you can use for all your house expenses, must be less than which of the following percentages?
a. 15%
b. 22%
c. 28%
d. 36%
4. Which of the following is not typically included in a house payment?
a. Interest
b. Insurance
c. Realtor commission
d. Property taxes