1. Mandy has a 30-year adjustable rate mortgage with a rate of 4.8% for the first 2 years. The monthly payment is $813.23. The amount of the mortgage is $155,000. What is the remaining balance after 2 years rounded to the nearest dollar? A. $150,143 B. $135,482 C. $144,667 D. $141,926 2. The bank offers Mitchell a fixed rate loan with no points and a fixed rate loan with points. The difference in monthly payments between the loan with points and the loan without points is $27.31. The cost of the points is $1,800. What number is closest to the break-even point rounded to the nearest month? A. 78 months B. 66 months C. 5 months D. 18 months 3. How are a 25-year 4% fixed rate mortgage and a 25-year 4% adjustable rate mortgage with terms 3/1 and a cap of 2/7 the same? How are they different?
1. Mandy has a 30-year adjustable rate mortgage with a rate of 4.8% for the first 2 years. The monthly payment is $813.23. The amount of the mortgage is $155,000. What is the remaining balance after 2 years rounded to the nearest dollar? A. $150,143 B. $135,482 C. $144,667 D. $141,926 2. The bank offers Mitchell a fixed rate loan with no points and a fixed rate loan with points. The difference in monthly payments between the loan with points and the loan without points is $27.31. The cost of the points is $1,800. What number is closest to the break-even point rounded to the nearest month? A. 78 months B. 66 months C. 5 months D. 18 months 3. How are a 25-year 4% fixed rate mortgage and a 25-year 4% adjustable rate mortgage with terms 3/1 and a cap of 2/7 the same? How are they different?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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plz solve question 2 with explanation. I will givw u multiple upvotes.
Transcribed Image Text:1. Mandy has a 30-year adjustable rate mortgage with a rate of 4.8% for the first 2 years. The monthly payment is $813.23. The amount of the
mortgage is $155,000. What is the remaining balance after 2 years rounded to the nearest dollar?
A. $150,143
B. $135,482
C. $144,667
D. $141,926
2. The bank offers Mitchell a fixed rate loan with no points and a fixed rate loan with points. The difference in monthly payments between the
loan with points and the loan without points is $27.31. The cost of the points is $1,800. What number is closest to the break-even point
rounded to the nearest month?
A. 78 months
B. 66 months
C. 5 months
D. 18 months
3. How are a 25-year 4% fixed rate mortgage and a 25-year 4% adjustable rate mortgage with terms 3/1 and a cap of 2/7 the same? How are
they different?
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