This topic contains a solution. Click here to go to the answer

Author Question: As applied to mortgage loans, which of the following statements is FALSE? A) Advertised rates are ... (Read 52 times)

MirandaLo

  • Hero Member
  • *****
  • Posts: 538
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
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
Thanks for the timely response, appreciate it


Missbam101

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Excellent

 

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

For a complete list of videos, visit our video library