Question

QUESTION 5

1. Suppose you want to buy a house that costs $750,000. You are required to put 10% down, which means the amount to be borrowed is 90% of the price of the house. If you want a 30 year mortgage, and the borrowing rate is 5.6% APR compounded monthly, what would be your monthly payment? (Answer to the nearest penny)

5 points   

QUESTION 6

1. Suppose you want to buy a car that costs $17,000. If the dealer is offering 100% financing at 7.4% APR compounded monthly for a 5 year loan, what would be the monthly payment? (Answer to the nearest penny)

5 points   

QUESTION 7

1. Suppose you have accumulated $23,000 in credit card debt. If the interest rate on the credit card is 24.1% APR compounded monthly, how many years will it take you to pay off this debt if you pay $500 per month? (Answer to the nearest tenth of a year)

5 points   

QUESTION 8

1. IF an interest rate is quoted as 18.5% APR compounded monthly, what would be the annual percentage yield (APY)? (Answer to the nearest tenth of a percent)

Answer 1

Size of the loan$675,000 [ 750000 *0.9] Monthly payment-PMTLoan [(1-(1/(1+rAn)))/r] 750,000 I((1-(1/(1.00467360))/0.00467] $3,875.03