1) You've decied to buy a hour that is valued at $1 million. You have $200,000 to use as a down payment on the house and want to take out a mortgage for the remainder of the purchase price. your bank has approved your $800,000 mortgage, and is offering a standard 30-year mortgage at 9% fixed nominal interest rate. Unde this loan proposal, your mortgage payment will be _______ per month.
a) 8046.23 b) 8689.92 c) 9977.32 d) 6436.98
2) Your friends sggest that you take a 15-year mortgage, becuse a 30-year mortgage is too lng and you will pay a lot of money on interest. If your bank approves a 15-year $800,000 loan at a fixed nominal interest rate of 9%, then the difference in monthly payment of the 15-year mortgage and 30-year mortgage will be?
a) 2767.3 b) 1677.15 c) 2431.87 d) 1928.72
3) Which of the following statements is not true about mortgages?
a) the ending balance of an amortized loan contract will be zero
b) mortgages are examples of amortized loans
c) mortgages always have a fixed noinal interest rate
d) the payment allocated toward a principal in an amortized loan is the residual balanc- that is, the diference between total payment and the interest due