What is the monthly payment on the mortgage loan

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Reference no: EM132023325

Suppose Bank of America quotes a 10% annual interest rate to you.

If your deposit in the bank is compounded monthly what is the effective annual interest rate that your money earns?

a. 11.04% b. 10.47% c. 10.12% d. 10.00%

Suppose your money is compounded once a year in Bank of America. Your uncle promises you today that he will give you the following cash flows at the end each year for the next 5 years: $1,000; $4,000; $9,000; $5,000; and $2,000 respectively. You decide to save your uncle’s annual gift in Bank of America. What is the present value of your uncle’s promise?

a. 11,220.16 b. 14,249.34 c. 16,607.77 d. 15,633.62

You think the inflation rate in the future will be higher than the market expectation.

Which of the following types of mortgages would you like to take if you want to buy a house?

a. adjustable rate mortgage (ARM) b. fixed rate mortgage (FRM) c. 5/1 ARM d. interest-only mortgage

Which of the following mortgages would you most like to give if you are a loan officer?

a. adjustable rate mortgage (ARM) b. fixed rate mortgage (FRM) c. 5/1 ARM d. interest-only mortgage

A $200,000 conventional fixed-rate mortgage is financed for 15 years with 7% annual rate.

What is the monthly payment?

a. $1830 b. $1798 c. $1679 d. $1721

What is the loan balance after 10 years if paid as agreed?

a. $92,721 b. $83,581 c. $85,492 d. $90,731

A $150,000 home is financed by a 30 percent down, 25-year, and 9 percent loan.

What is the monthly payment on the mortgage loan?

a. $636.09 b. $881.25 c. $763.31 d. $677.82

What was the amount of interest paid in the first month of the loan?

a. $702.32 b. $787.50 c. $726.31 d. $583.33

What is the remaining balance on the mortgage at the end of the 60th month?

a. $ 81,450 b. $100,666 c. $ 79,097 d. $ 97,929

Reference no: EM132023325

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