Assume you just bought a new home and now have a mortgage on the home. The amount of the principal is $150,000, the loan is at 5% APR, and the monthly payments are spread out over 30 years
What is the loan payment? Use a calculator to determine your answer.
A) $798.95
B) $805.23
C) $850.32
D) $903.47
Answer: B
Explanation: B) With Mode of P/Y = 12 and C/Y = 12, N = 360, I/Y = 5, PV = $150,000, and FV = 0, we get $805.23 as the monthly payment.
You might also like to view...
Using the indirect method, patent amortization expense for the period
A) is deducted from net income. B) has no impact on cash flows. C) causes cash to decrease. D) is added to net income.
A report's format is less important than its content
Indicate whether the statement is true or false
Which of the following is a disadvantage of checklist appraisal?
A. The quality of the appraisal completely depends on a supervisor's writing skills. B. A supervisor has no way to adjust the answers for any special circumstances that affect performance. C. Supervisors tend to record negative events more than positive ones, resulting in an overly harsh appraisal. D. It makes some employees look good at the expense of others, which can make it ineffective for motivating team performance.
When the variance of a probability distribution is $360,000, the standard deviation equals:
A) $600 B) $3,600 C) $180,000 D) $12,000