You Borrow £149,000 to Buy a House

question 127

Multiple Choice

You borrow £149,000 to buy a house.The mortgage rate is 7.5% and the loan period is 30 years. Payments are made monthly.If you pay for the house according to the loan agreement, how much total interest will you pay?

• A)£138,086
• B)£218,161
• C)£226,059
• D)£287,086
• E)£375,059

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Definitions:

Authorized Shares

The maximum number of shares that a corporation is legally allowed to issue, as specified in its articles of incorporation.

Reacquired Shares

Shares that a company buys back from its shareholders, reducing the amount of outstanding stock on the market.

Par Common Stock

The nominal or face value assigned to common shares in the articles of incorporation, often having little relation to the market value.

Preferred Stock

represents a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with fixed dividends.