19)

James wants to buy a house worth $300,000. To do so, he takes out a mortgage loan equal to the price of the house (no down payment). The mortgage has to be repaid after 15 years and make monthly payments with an APR of 10%. Given this information, answer the following

How many payments in total would James have to make on this loan?

A.

180

B.

15

C.

165

Which of the following expressions would correctly determine the periodic payment C that James has to make on his loan? . C= (300,000(0.0083)) 1 (1- (1+0.0083, 165 B. C= (300,000(0.1)) 1 (1-17 (1 +0.1,15 . C= (300,000(0.0083)) 1 (1 + 0.008315 OD. (300,000(0.0083)) C= (1 +0.0083, 180 After 14 years of paying off the mortgage, James has accumulated enough savings that he wants to pay off the remainder of the loan. How much does James still owe on his loan 14 years after he first started making payments on the loan? (NOTE: the cash flow Crefers to the actual payment from the problem above - we don't need the actual number to answer the question) OA. 1 C PV(remaining balance) = 0.0083 (1 +0.0083, 12 OB. 1 PV(remaining balance) = 0.0083 (1 +0.0083,14 O c. 1 PV(remaining balance) = 0.0083 (1 +0.0083,16 168 OD. 1 C PV(remaining balance) = 0.0083 (1 +0.0083)