Mortgages have an APR (anrual percentage rate - a stated rate) of 5.04% on fived-interest rate loans. Payments and compounding are monthly

1. 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