1. A household buys a house for $435,000. It finances the purchase with an 85% loan-to-value loan. The loan is a 25-year fully amortized loan at a fixed rate of 7.10%. What are the monthly repayments?

a) $2,468.45

b) $2,636.95

c) $2,792.07

d) $3,102.29

2. Based on the loan in question 1, how much is the outstanding principal after 2 years?

a) $394,241.67

b) $362,538.10

c) $358,201.19

d) $338,106.59

3. What are the monthly repayments on a 20-year interest-only loan for $375,000 at an interest rate of 6.50%?

a) $1,875.46

b) $2,335.29

c) $2,031.25

d) $1,944.84

4. What are the total repayments of the loan detailed in Question 3?

a) $862,500.00

b) $487,500.00

c) $597,835.00

d) $791,000.00