BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$1, 833.33
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$161.48
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$1, 857.02
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$2, 005.04
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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: -One of the most popular loan options is a 30-year fixed-rate mortgage loan. This means that you’ll pay back the loan over 30 years, and your interest rate will remain the same throughout the life of your loan.
Detailed explanation-3: -Let’s use the $300, 000 fixed-rate mortgage example again, with a monthly payment of $1, 703. To find out how much you’re paying in principal and interest each month, multiply the principal ($300, 000) by the annual interest rate of 5.5% (0.055). Then, divide that total ($16, 500) by 12 months.
Detailed explanation-4: -Do Mortgage Payments Go Down Over Time? With a typical fixed-rate loan, no-your mortgage payment will not decrease over time. However, your mortgage payments’ makeup does change over time because of how your amortization schedule-the schedule of your payments-distributes interest payments and principal payments.