Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
1. If 5,000 earns 86.00 interest in 15 months, how much is the rate of
interest?
2. If the interest rate is 7.5% per year and the principal is 2,500,
determine the amount of interest for 20 months including the full
amount.
3. How long will it take to accumulate 3,200 to 4,800 if money is worth
6.5%?
4. At what simple interest rate is 20,500 the interest for 12 years on
40,000?
5. Mr. Cruz agreed to pay Mr. Toledo 100,000 at the end of 5 years.
How much should Mr. Cruz pay now to settle his account if Mr.
Toledo agrees that money is worth (a) 8-1/2% simple interest ,
(b) 9-1/2% simple interest ? Which rate is advantageous for Mr.
Cruz and for Mr. Toledo?
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