2 Val has just purchased her first home. Her gross income is $6,000 a month and her GDS ratio is 30%. Non-mortgage costs per month are $600. Val's mortgage has a 3%, compounded semi-annually rate, with an amortization period of 25 years and monthly payments. If her home is valued at $350,000, which describes th type of mortgage has she? 1. Fixed-rate II. Variable-rate III. High-ratio IV. Conventional
2 Val has just purchased her first home. Her gross income is $6,000 a month and her GDS ratio is 30%. Non-mortgage costs per month are $600. Val's mortgage has a 3%, compounded semi-annually rate, with an amortization period of 25 years and monthly payments. If her home is valued at $350,000, which describes th type of mortgage has she? 1. Fixed-rate II. Variable-rate III. High-ratio IV. Conventional
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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![2
Val has just purchased her first home. Her gross income is $6,000 a month and her GDS ratio is 30%. Non-mortgage costs per month are $600. Val's mortgage
has a 3%, compounded semi-annually rate, with an amortization period of 25 years and monthly payments. If her home is valued at $350,000, which describes the
type of mortgage has she?
1. Fixed-rate
II. Variable-rate
III. High-ratio
IV. Conventional
A
B
C
D
I and III, only
II and IV, only
II and III, only
I and IV, only](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82df490b-d5e8-4a5c-97df-6466f42116fe%2Fdca66ebe-4107-419c-ad0e-fd94c478989a%2Fbinqbgr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2
Val has just purchased her first home. Her gross income is $6,000 a month and her GDS ratio is 30%. Non-mortgage costs per month are $600. Val's mortgage
has a 3%, compounded semi-annually rate, with an amortization period of 25 years and monthly payments. If her home is valued at $350,000, which describes the
type of mortgage has she?
1. Fixed-rate
II. Variable-rate
III. High-ratio
IV. Conventional
A
B
C
D
I and III, only
II and IV, only
II and III, only
I and IV, only
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