You Are Considering Purchasing a New Home

question 49

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.

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Definitions:

Arithmetic Approach

Utilizing basic mathematical operations like addition, subtraction, multiplication, and division to solve problems.

Logarithmic Approach

A mathematical method used for scaling data or solving certain types of equations involving exponential relationships.