Find the Monthly House Payment Necessary to Amortize the Following

question 11

Multiple Choice

Find the monthly house payment necessary to amortize the following loan.
-In order to purchase a home, a family borrows $70,000 at 12% for 15 years. What is the monthly payment?

• A) $902.99
• B) $700.00
• C) $46.67
• D) $840.12

---

Definitions:

MPC

The marginal propensity to consume, which is the portion of additional income that a consumer spends on goods and services.

Consumption

The total value of goods and services consumed by households and businesses.

APC

Average Propensity to Consume, the fraction of total disposable income that households plan to spend on consumption as opposed to saving.

Income

The financial gain accrued by an individual or entity within a specified period, often through wages, salaries, or investments.