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In: Finance

You’d like to buy a house. You can borrow $600,000 but you can only afford to...

  1. You’d like to buy a house. You can borrow $600,000 but you can only afford to make monthly payments of $2,750. The lender agrees to allow you to make this payment on a 30 year mortgage, but then you must make a balloon payment to cover any shortfall. What is the dollar amount you’ll still owe if your mortgage rate is 4.349%
    $174,763
    $217,206
    $189,305
    $154,611
  2. You have $12,000 in credit card debt and have finally decided to start to really pay it off. You determine that you’ll be able to make the following monthly payments. The APR on your credit card is 22%. Your first payment is today. How much will you owe after your last payment?

  3. Month

    Payment

    1

    2000

    2

    2000

    3

    1500

    4

    1500

    5

    1500

    6

    1000

    7

    1000

    8

    500

    9

    500

    10

    500

$842.19

$1044.68

$0.00

$785.60

Solutions

Expert Solution

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2)

Formulae

jeff jeffy answered 2 years ago
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