Asked by Annet Jamrych on Jun 21, 2024
Verified
Kate and Ashton have been approved for a $200,000 15-year mortgage with an APR of 5.5%.How much of their first monthly payment will go to interest?
A) $1,634.17
B) $1,147.57
C) $916.67
D) $717.50
APR
Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment, including any fees or additional costs associated with the transaction.
Mortgage
A loan used by individuals and businesses to purchase real estate without paying the entire purchase price upfront, wherein the property itself serves as collateral for the loan.
Interest
The cost of borrowing money, typically expressed as a percentage of the amount borrowed.
- Acquire an understanding of the financial factors pertinent to real estate investment, including equity, mortgage operations, and interest rate calculations.
- Assess and review financial documents and statements pertaining to personal and property financial matters.
Verified Answer
Learning Objectives
- Acquire an understanding of the financial factors pertinent to real estate investment, including equity, mortgage operations, and interest rate calculations.
- Assess and review financial documents and statements pertaining to personal and property financial matters.
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