You are buying a house for $250,000 using a 20 year mortgage with interest rate

Question

You are buying a house for $250,000 using a 20 year mortgage with interest rate of 12%. How much is your monthly payment? a. $2,750 b. $1,960 c. $1,500 d. $1,756 8. A house was bought for $200,000 using a 20 year monger at 12% interest rate. After the 120th payment it was refinanced with 6% Interest rate mortgage for 10 years What is the reduction in monthly payments? a. $356 b. $412 C. $498 d. $505 9. What is the maximum amount you would be willing to lend someone If they promise to give you $1000 per month for 52 months and your MARR is 12%? a. $36,890 b. $40,394 c. $42,560 d. $39,458 10. A 7% coupon rate bond has a face value of $10,000 and pays interest semiannually. If the current interest rate for similar bonds is 10% and the bond matures in 20 years, what is its present worth? a. $7,425.65 b. $6,325.40 c. $9,875.20 d. $8,350.45 11. A company bought an equipment which is considered a 7 year class equipment for MACRS depreciation purposes. If the cost of the equipment was $200,000 what is its book value at the end of year 6? a. $32,458 b. $28,456 c. $26,780 d. $24,450

Explanation / Answer

Answer 7 : Answer 'a' is correct. That is $ 2750.

Answer 8 : Answer 'd' is correct. That is $ 505.

Answer 9: Answer 'b' is correct. That is $ 40394.

Answer 10 : Answer 'a' is correct. That is $ 7425.65

Answer 11 : Answer 'c' is correct. That is $ 26780.

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