Mortgages have an APR (annual percentage rate - a stated rate) of 6.96% on fixed-interest-rate loans. Payments and compounding are monthly.

1. What is the periodic (effective) monthly rate, written as a decimal and carried out four places?

Select one:

A. .0048

B. .0050

C. .0056

D. .0058

E. .0060

2. You wish to take out a 15 year, fixed-rate mortgage. You have decided you can afford monthly payments of $3,200.00. Assume that fees are included in the loan. How much can you borrow?

Select one:

$351,630.29

$356,906.46

$362,299.55

$379,211.25

$385,103.40

$572,883.67

$572,987.19

$573,090.72

$573,401.49

$573,505.13

3. How much of the first payment will be interest?

Select one:

$1.739.04

$1,896.06

$2,070.06

$2,109.78

$2,156 58

4. Points) How much of the first payment will be principal?

Select one:

$1,043.42

$1,090.22

$1,129.94

$1,303.94

$1,460.96