2FA3 Practice Midterm [1]

FALL 2022 OFFICIAL PRACTICE MIDTERM 

55 Questions with Answers 

Sample Questions:

• You are looking at a house and are planning to take a $700,000 mortgage at 2% for 25 years. However, your bank called you to say that the interest rates have been increased to 5%. How
  much would your monthly payments go up because of this interest rate increase? Assume
  payments are made at the end of the month.
• 2. You invest $25,000 today. Stocks will earn 8% per year and a GIC will earn 4%
  compounded annually. How much more will you have in 5 years if you invest in stocks?