Please use the following information for Questions 9 12.

You are buying a house that costs $800,000 and you have $80,000 for a down payment. The bank will lend you $720,000 at a rate of 3.5%, compounded semi-annually, and amortized over 30 years.

How much is your monthly payment?

Multiple Choice

• $4,278.54

• $3,222.98

• $2,471.65

• $1,825.78

Please use the following information for Questions 9 12.

You are buying a house that costs $800,000 and you have $80,000 for a down payment. The bank will lend you $720,000 at a rate of 3.5%, compounded semi-annually, and amortized over 30 years.

What is the balance outstanding on the mortgage after the 50th payment has been made?

Multiple Choice

• $257,951.25

• $963,321.45

• $825,745.58

• $658,862.70

Please use the following information for Questions 9 12.

You are buying a house that costs $800,000 and you have $80,000 for a down payment. The bank will lend you $720,000 at a rate of 3.5%, compounded semi-annually, and amortized over 30 years.

What is the total amount of interest paid on the loan over its 30-year life?

Multiple Choice

• $440,273

• $854,250

• $295,375

• $150,500

Please use the following information for Questions 9 12.

If you were to decide that bi-weekly payments (bi-weekly means you pay once every two weeks or 26 payments per year) better fitted your cash flow than monthly payments, based on the same numbers used above (principal of $720,000, 3.5% interest rate, compounded twice a year and amortized over 30 years), what is your bi-weekly mortgage payment?

Multiple Choice

• $950.50

• $2,154.45

• $1,659.47

• $1,486.37