Question
Mortgages have an APR (anrual percentage rate - a stated rate) of 5.04% on fived-interest rate loans. Payments and compounding are monthly The periodic (effective)
Mortgages have an APR (anrual percentage rate - a stated rate) of 5.04% on fived-interest rate loans. Payments and compounding are monthly
- The periodic (effective) monthly rate is:
Select one:
a. .0041
b. .0042
c. .0048
d. .0051
e. .0053
f. .0067
2. You wish to take out a 20 year, fixed-rate mortgage. You decide that you can afford monthly payments of $3,670.00. Assume that fees are included in the loan. How much can you borrow?
Select one:
a. 462,870.20
b. 510,335.78
c. 554,240.49
d. 697,833.29
e. 720,011.93
f. 876,357.34
g. 1,224,373.39
3. How much of the first payment will be interest?
Select one:
a. 1,145.21
b. 2,327.81
c. 2,441.33
d. 2,492.37
e. 2,779.90
f. 2,990.00
g. 3,015.16
4. How much of the first payment will be principal?
Select one:
a. 654.84
b. 680.00
c. 890.10
d. 1,177.63
e. 1,228.67
f. 1,342.19
g. 2,524.79
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