Question

# purchase of your first home for \$600,000. You have just purchased the house and have put...

purchase of your first home for \$600,000.

You have just purchased the house and have put a 20% down payment, and will borrow the remaining amount.  The 15-year fixed rate loan has an Annual Percentage Rate (APR) of 3.875%.   You will make monthly payments for the life of the loan.

Question 12

You have just purchased the house and have put a 20% down payment, and will borrow the remaining amount.  The 15-year fixed rate loan has an Annual Percentage Rate (APR) of 3.875%.   You will make monthly payments for the life of the loan.

You have made payments for the first year of the loan. How much have you paid in interest for the first year of the loan?

a. \$17,000 to \$19,000

b. Less than \$15,000

c. \$15,000 to \$17,000

d. \$19,000 to \$21,000

e. More than \$21,000

Question 13

You have just purchased the house and have put a 20% down payment, and will borrow the remaining amount.  The 15-year fixed rate loan has an Annual Percentage Rate (APR) of 3.875%.   You will make monthly payments for the life of the loan.

You've made mortgage payments for the first year of the loan. How much have you made in principal payments. Stated differently, by how much did you reduce the loan balance?

Select one:

a. \$19,000 to \$21,000

b. \$15,000 to \$17,000

c. \$17,000 to \$19,000

d. More than \$21,000

e. Less than \$15,000