Solve the problem.You need a loan of $120,000 to buy a home. You have a choice between a 30-year fixed rate loan at 4% and an ARM with a first-year rate of 2%. Suppose that the ARM rate rises to 7% at the start of the third year. Neglecting compounding and changes in principal, estimate how much extra you will be paying per month during the third year of the ARM over what you would have paid if you had taken the fixed rate loan.
A. $300
B. $280
C. $290
D. $270
Answer: A
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Find the indicated sum.
A. 54 B. 162 C. 108 D. 81
Solve the problem.In a recent year, the total receipts for the US federal government were $2154 billion. The total outlays were $2472 billion. The deficit was $318 billion. What would the deficit have been, if there had been a 0.5% decrease in total outlays?
A. $296 billion B. $329 billion C. $306 billion D. $302 billion
Solve the problem.A high school graduating class is made up of 394 students. There are 74 more girls than boys. How many boys are in the class?
A. 74 boys B. 234 boys C. 394 boys D. 160 boys
Provide an appropriate response.If you sell a stock for more than you paid for it, you have a __________.
A. capital gain B. return C. dividend D. None of the above