Question 5

1 Point

How much Principal is Paid after 5 Years?

$44,996.80

$65,045.09

$180,640.65

$183,415.39

Question 4

1 Point

How much Interest is Paid after 5 Years?

$44,996.80

$65,045.09

$180,640.65

$183,415.39

Question 3

1 Point

What amount of the Monthly Mortgage Payment goes toward Interest on the 36th payment?

$2,984.95

$2,917.36

$2,992.37

$3,039.12

Question 2

1 Point

What is the Monthly Mortgage Payment?

$3,771.97

$3,806.87

$3,837.12

$4,094.76

Question 1

1 Point

What is the Effective Periodic Rate (EPR)?

0.4868%

0.4939%

0.5000%

3.0000%

Suppose you purchase a home for $800,000. After providing a 20% down payment (or $160,000), you decide to go to your friendly, neighborhood bank to request a mortgage for the remaining balance. If you would like monthly payments over a 30-year amortization period and the bank is quoting 6% APR compounded semi-annually, answer the following: