This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: As applied to mortgage loans, which of the following statements is FALSE? A) Advertised rates are ... (Read 46 times)

MirandaLo

  • Hero Member
  • *****
  • Posts: 538
on: Jul 10, 2018
As applied to mortgage loans, which of the following statements is FALSE?
 
  A) Advertised rates are annual percentage rates.
  B) A spreadsheet uses the periodic interest rate, not the annual percentage rate.
  C) By increasing the number of payments per year you increase your effective borrowing rate.
  D) You can find a monthly payment by dividing the annual payment by 12.

Question 2

A perpetuity pays 550 at the end of every month. The PV of the perpetuity is 36,000. What is the nominal annual rate (APR) on the perpetuity?
 
  A) 18.33
  B) 9.17
  C) 19.96
  D) 13.42
  E) 15.15


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

xMRAZ

  • Sr. Member
  • ****
  • Posts: 363
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: D
Explanation: D) A mortgage problem is VERY SIMILAR to a future value problem with an annuity.

Answer to Question 2

A


MirandaLo

  • Member
  • Posts: 538
Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

lkanara2

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Application of an ostomy bag or pouch: E, A clamp is applied to the bottom of the bag once it is in Application of an ostomy bag or pouch: E, A clamp is applied to the bottom of the bag once it is in
False-color imagery of the Sun, a G-type main-sequence star, the closest to Earth. False-color imagery of the Sun, a G-type main-sequence star, the closest to Earth.
Transdermal patch administration: (b) patch immediately applied to clean, dry, hairless skin and lab Transdermal patch administration: (b) patch immediately applied to clean, dry, hairless skin and lab
How to convert verbal statements into algebraic equations (Part 3) How to convert verbal statements into algebraic equations (Part 3)
The developing and emerging nations have high rates of population growth The developing and emerging nations have high rates of population growth
The rates of police reported sexual offences The rates of police reported sexual offences
Video: Pores and Ion Channels

For a complete list of videos, visit our video library