Author Question: You have just taken out a 30-year mortgage on your new home for 120,000. This mortgage is to be ... (Read 97 times)

james · **on:** Jul 10, 2018

You have just taken out a 30-year mortgage on your new home for 120,000. This mortgage is to be repaid in 360 equal monthly installments.

If the stated (nominal) annual interest rate is 14.75 percent, what is the amount of each of the monthly installments? Round to the nearest whole dollar.
A) 1,515
B) 1,472
C) 1,493
D) 1,522
E) 1,440

Question 2

Exchange rate risk

A) exists also in direct foreign investments and foreign portfolio investments.
B) exists when the contract is written in terms of the foreign currency.
C) does not exist if the international trade contract is written in terms of the domestic currency.
D) all of the above