If the Down Payment for a $250,000 Home Is $50,000

question 23

Multiple Choice

If the down payment for a $250,000 home is $50,000 and the mortgage is $200,000, the leverage ratio is:

• A) 0.25.
• B) 1.25.
• C)4.
• D) 5.

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Definitions:

Vertical Intercept

The point at which a curve hits the vertical axis; it shows the value of the y-variable when the value of the x-variable is zero.

X-variable

A variable representing an unknown or unspecified quantity in mathematical functions or equations.

Y-variable

In a coordinate system, it represents the dependent variable, whose value depends on that of another variable (usually the x-variable).

Variables

Elements or features that can change and affect the outcome of a model or experiment, often used in research to measure and analyze differences.