BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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RM60, 000
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RM12, 600
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RM6, 000
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RM1, 260
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Detailed explanation-1: -These factors include the total amount you’re borrowing from a bank, the interest rate for the loan, and the amount of time you have to pay back your mortgage in full. For your mortgage calc, you’ll use the following equation: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1].
Detailed explanation-2: -As you’ll see in the table below, a 1% difference between a $200, 000 home with a $160, 000 mortgage increases your monthly payment by almost $100. Although the difference in monthly payment may not seem that extreme, the 1% higher rate means you’ll pay approximately $30, 000 more in interest over the 30-year term.
Detailed explanation-3: -The average mortgage rate for a $500, 000, 30-year fixed-rate loan is around 5.4% for those with good credit. So, your monthly payment would be around $2250 without taxes and fees.
Detailed explanation-4: -On a $300, 000 mortgage with a 3% APR, you’d pay $2, 071.74 per month on a 15-year loan and $1, 264.81 on a 30-year loan, not including escrow. Escrow costs vary depending on your home’s location, insurer, and other details.