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Your monthly mortgage payment (principal plus interest) is $1,500. If you have a 34-year loan with a fixed interest rate of 0.25% per month, how much did you borrow from the bank to purchase your house?

Your monthly mortgage payment (principal plus interest) is $1,500. If you have a 34-year loan with a fixed interest rate of 0.25% per month, how much did you borrow from the bank to purchase your house?

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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**Question:** Your monthly mortgage payment (principal plus interest) is $1,500. If you have a 34-year loan with a fixed interest rate of 0.25% per month, how much did you borrow from the bank to purchase your house? **Choose the closest to the correct answer below:** - A. $383,000 - B. $433,000 - C. $612,000 - D. $102,000 - E. $76,000 **Correct Answer:** - A. $383,000 This question is designed to test your understanding of loan amortization and calculation of the principal amount based on mortgage terms.
Transcribed Image Text:**Question:** Your monthly mortgage payment (principal plus interest) is $1,500. If you have a 34-year loan with a fixed interest rate of 0.25% per month, how much did you borrow from the bank to purchase your house? **Choose the closest to the correct answer below:** - A. $383,000 - B. $433,000 - C. $612,000 - D. $102,000 - E. $76,000 **Correct Answer:** - A. $383,000 This question is designed to test your understanding of loan amortization and calculation of the principal amount based on mortgage terms.
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