Questions 12-14 refer to the purchase of your new house!

12. You've decided to buy a new house for $560,000. You will put a down payment of 20% of the purchase price of the house. The bank will loan you the rest at an interest rate of 3.75% [APR] for a 15-year loan. How much will be your monthly payment?

a. Less than $1,500 per month

b. $4,000 to $4,500

c. $3,500 to $4,000

d. $2,000 to $2,500

e. More than $5,500

f. $3,000 to $3,500

g. $1,500 to $2,000

h. $2,500 to $3,000

i. $4,500 to $5,000

13 After one year, how much have you paid in interest?

a. $35,000 to $40,000

b. $30,000 to $35,000

c. $5,000 to $10,000

d. $15,000 to $20,000

e. $10,000 to $15,000

f. $20,000 to $25,000

g. $25,000 to $30,000

h. 0 to $5,000

i. More than $50,000

14 After one year, how much have you paid in principal?

a. $40,000 to $50,000

b. $30,000 to $35,000

c. $15,000 to $20,000

d. $25,000 to $30,000

e. $20,000 to $25,000

f. $5,000 to $10,000

g. More than $50,000

h. $35,000 to $40,000

i. 0 to $5,000

j. $10,000 to $15,000