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Question 6 1.5 pts You take out a $430,000 mortgage loan. It is to be paid off in exactly twenty years, with monthly payments of

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Question 6 1.5 pts You take out a $430,000 mortgage loan. It is to be paid off in exactly twenty years, with monthly payments of $2897.53. What is the APR of this loan? 7.25% 8.25% 3.25% 5.25% Question 7 1.5 pts Three years ago you purchased a new SUV. You financed your SUV for 60 months (with payments made at the end of the month) with a loan at 5.25% APR. Your monthly payments are $488.10 and you have just made your 36th monthly payment on your SUV. Assuming that you have made all of the first 36 payments on time, then the outstanding principal balance on your SUV loan is closest to $9,848 $11.097 $12,727 $14,383 Question 8 1.5 pts Five years ago you took out a 30-year mortgage with an APR of 4.5% for $350,000. If you were to refinance the mortgage today for 15 years at an APR of 3.25%, how much would your monthly payment change by? The monthly payment will decrease by $468.49. The monthly payment will decrease by $104.79. The monthly payment will increase by $104.79. The monthly payment will increase by $468.49. Question 9 1.5 pts You are thinking about leasing a car. The purchase price of the car is $45,000. The residual value (the amount you could pay to keep the car at the end of the lease) is $20,000 at the end of 48 months. Assume the first lease payment is due one month after you get the car. The interest rate implicit in the lease is 5% APR, compounded monthly. What will your lease payments be for a 48-month lease? Hint: There are essentially two ways to own the car: (1) you pay $45,000 today, or (2) you make 48 monthly lease payments and then at the end of the 48th month you pay $20,000 to obtain the ownership of the car. What would the monthly lease payments be in order for these two ways to have the same cost in terms of the dollar value today (i.e., same PV)? $954.76 $659.07 $375.49 $531.33

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