You Are Considering Purchasing a New Home

question 29

Multiple Choice

You are considering purchasing a new home.You will need to borrow $250,000 to purchase the home.A mortgage company offers you a 15-year fixed rate mortgage (180 months) at 9% APR (0.75% month) .If you borrow the money from this mortgage company,your monthly mortgage payment will be closest to:

• A)$2585
• B)$660
• C)$2535
• D)$1390
• E)$1868

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Definitions:

Period Costs

Expenses incurred that are not directly tied to production activities, such as administrative and selling expenses, and are charged to the period in which they arise.

Factory Supervisor

An individual responsible for overseeing the daily operations, personnel, and production processes in a factory or manufacturing plant.

Depreciation

The process of allocating the cost of a tangible asset over its useful life.

Administrative Expense

Overhead or general expenses related to the day-to-day operations of a business but not directly tied to a specific project or product.