Fixed-rate mortgage for ten years

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Reference no: EM131336394

1) A home buyer buys a house for $1,427,000. She pays? 20% cash, and takes a? fixed-rate mortgage for ten years at 6.25?% APR. If she makes? semi-monthly payments, which of the following is closest to each of her? payment?

a. $5,122.37

B. $7,683.55

C. $7,043.26

D. $6,402.96

2) You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $215 for the phone and then monthly charges of $64 for 24 months. Carrier B wants you to pay $115 for the phone and monthly charges of $72 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 3.9%. Based on cost? alone, which carrier should you? choose?

Based in cost alone you will choose

Carrier A

Carrier B

Reference no: EM131336394

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Fixed-rate mortgage for ten years : A home buyer buys a house for $1,427,000. She pays? 20% cash, and takes a? fixed-rate mortgage for ten years at 6.25?% APR. If she makes? semi-monthly payments, which of the following is closest to each of her? payment?

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