Question
Sarah purchased a home at Table Rock lake for $95,000 and made a 17% down payment. She qualified for a 15-year mortgage at 8.00%. What
Sarah purchased a home at Table Rock lake for $95,000 and made a 17% down payment. She qualified for a 15-year mortgage at 8.00%. What is the beginning principal on her mortgage.
| A. | $16,150 | |
| B. | $95,000 | |
| C. | $78,850 | |
| D. | $78,000 |
Liz bought a house for $125,000 and gave a down payment of $20,000. She chose a 30-year mortgage charging 8.50% interest and and no points. What is the total cost of interest for her mortgage?
| A. | $185,682 | |
| B. | $205,300 | |
| C. | $172,452 | |
| D. | $221,050 |
Guy purchased a home by taking out a mortgage for $88,000. Guy's mortgage charges 8% for 30 years. By what amount is the principal reduced by the first monthly payment, rounded to the nearest cent?
| A. | $67.33 | |
| B. | $59.25 | |
| C. | $586.67 | |
| D. | $666.67 |
Kim bought a condominium for $100,000. She made a 20 percent down payment and agreed to an 7.50% mortgage for 30 years. How much of her first payment applied to interest, rounded to the nearest cent?
| A. | $466.67 | |
| B. | $560.00 | |
| C. | $500.00 | |
| D. | $532.80 |
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Econometric Analysis
Authors: William H. Greene
5th Edition
130661899, 978-0130661890
