Solve the Problem

question 221

Multiple Choice

Solve the problem. If necessary, use the table of monthly payments below. Round your answer to the nearest cent.
Monthly Payments to Repay Principal and Interest on a $1000 Mortgage
-Find the monthly payment needed to amortize principal and interest for the following fixed-rate mortgage.
Mortgage amount: $80,300
Term of mortgage: 20 years
Interest rate: 10.5%

• A)$801.70
• B)$774.91
• C)$828.85
• D)$758.18

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Definitions:

Trading Securities

Trading securities are investments in debt or equity that are purchased with the intention of selling them in the near term to realize short-term gains.

Comprehensive Income

The change in equity (net assets) of a business enterprise during a period from transactions and other events from non-owner sources. It includes all revenues, gains, expenses, and losses.

Cash Flows

The aggregate sum of money flowing in and out of an enterprise, crucially influencing its financial fluidity.

Unrealized Gains and Losses

Increases or decreases in the value of investments that a company holds but has not yet sold, and therefore, has not yet realized the gains or losses.