# Compute what the unpaid principal balance will be after youve made three payments on the mortgage.

Question 1:

1. a) You are purchasing a business building valued at \$275,000. You can find a mortgage at 5% if you can put 20% down. You believe your business can support a \$1,300 a month mortgage payment (not including taxes and insurance). Should you select a 25 year mortgage or a 30 year mortgage? Tell your reasons.
1. b) If your yearly taxes for the building will be \$2,600 and the insurance for the building will be \$1,600 per year, what will the total of the PITI for the mortgage be?
1. c) Compute what the unpaid principal balance will be after youve made three payments on the mortgage.
1. d) What will the new annual taxes on the property be if the assessed valuation is 60% of purchase price and the new tax rate is 1.80 per \$100 of assessed valuation?

Question 2:

1. a) Vonte Canyon, Arizona (a fictitious city) has a new budget of \$99,895,000 to pay for police, fire, schools, and government, among other expenses. The total assessed valuation (based on 60% of market value) in the city is \$7,899,023,000. Find the tax rate per \$1,000 of assessed valuation
1. b) Now find the taxes on a property that has an assessed valuation of \$190,500.

Question 3:

1. a) Find the sales tax of a new above ground pool that you pay \$12,500 for if the tax rate in your area is 8.9%.
1. b) Find the marked price and tax for an \$12 beer at the local football stadium, where the sales tax rate is 9.5%.

Question 4:

Research the excise tax for gasoline for the state of TX. For example, a state may have excise taxes of between \$0.283 cents per gallon to \$0.363 cents per gallon, depending on the county you purchase your gas in. If the current price for a gallon of gas is \$2.76, what percentage of each gallon of gas is the excise tax?