A Woman Buys an Apartment House for $1,250,000 by Making

question 48

Multiple Choice

A woman buys an apartment house for $1,250,000 by making a down payment of $275,000 and amortizing the rest of the debt with semiannual payments over the next 8 years. The annual interest rate on the debt is 9.0%, compounded semiannually. Find the total amount paid over the life of the loan (excluding the down payment) . Round your answer to the nearest cent. ​

• A)$5,554,559.05
• B)$694,319.88
• C)$4,165,919.29
• D)$1,388,639.76
• E)$2,777,279.53

---

Definitions:

Inspect

To look at something or someone carefully in order to detect faults or understand the details.

Objects

Physical items or entities that can be perceived by human senses and have a defined shape or form.

Cerebrum

The largest part of the human brain, responsible for voluntary motor functions, sensory perception, thought, reasoning, and memory.

Auditory Cortex

The part of the brain that is responsible for processing auditory information.