To Determine the Mortgage Payment on a Home Loan with Payments

question 6

Multiple Choice

To determine the mortgage payment on a home loan with payments made at the beginning of each month, you would

• A) determine the present value factor of an ordinary annuity and multiply the factor by the loan amount to determine the payment.
• B) determine the present value factor of an annuity due and divide the factor into the loan to determine the payment.
• C) determine the present value factor of an ordinary annuity and divide the factor into the loan to determine the payment.
• D) determine the present value factor of an annuity due and multiply the factor by the loan amount to determine the payment.

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