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Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage. Using your calculator the principal balance after the first payment is: 207,777.76 $207,720.95 $207,722.24 $207,270.59 $207,270.95 A mortgage of $80,000 with 2 points means the borrower would have to pay at closing $800. False True

Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage. Using your calculator the principal balance after the first payment is: 207,777.76 $207,720.95 $207,722.24 $207,270.59 $207,270.95 A mortgage of $80,000 with 2 points means the borrower would have to pay at closing $800. False True

Essentials Of Investments
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
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Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage. Using your calculator the principal balance after the first payment is: 207,777.76 $207,720.95 $207,722.24 $207,270.59 $207,270.95 A mortgage of $80,000 with 2 points means the borrower would have to pay at closing $800. False True
Transcribed Image Text:Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage. Using your calculator the principal balance after the first payment is: 207,777.76 $207,720.95 $207,722.24 $207,270.59 $207,270.95 A mortgage of $80,000 with 2 points means the borrower would have to pay at closing $800. False True
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