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You want to purchase a new house when you graduate. The house that you want costs $750,000. You will make a down payment of
You want to purchase a new house when you graduate. The house that you want costs $750,000. You will make a down payment of $125,000 and finance the remaining $625,000 with a residential mortgage, repayable monthly over 25 years. If the bank is currently charging 9%, compounded semi-annually, on mortgage loans, what is the effective annual interest rate on the loan? 9.15% 9.01% 9.20% 8.98% 9.10% What are your monthly payments? [Answers: Round to whole dollar with no $ symbol; e.g. $1,234.25 1234; negative if cash outflow = -1234, positive if cash inflow = 1234]
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