Angie wants to obtain a $500,000 mortgage, amortized over 25 years. Interest rates are currently 8%, compounded twice a year.

1. What is the Effective Annual Interest Rate?

a.8.16%

b.8.0%

c.7.8698%

d.8.4%

2. What is the monthly payment on the mortgage?

a.$3,816.07

b.$3,776.51

c.$3,666.84

d.3,912.23

3. What is the balance outstanding after 60 months?

a.$462,205.84

b.468,990.80

c.458,754.12

d.448,990.80

4. What is the total value of interest paid over the life of the mortgage?

a.$673,667.93

b.$623,667.93

c.$633,667.93

d.$653,667.93

5. How much would Angie pay per week if she decided to change her mortgage payments to weekly instead of monthly?

a.$878.42

b.$858.42

c.$868.42

d.$888.42