In Relation to a Housing Loan of $250 000 for 20

question 103

Multiple Choice

In relation to a housing loan of $250 000 for 20 years at 9% per annum compounding monthly with monthly repayments:

• A)the monthly repayment is $2249.31
• B)the first repayment includes $1875.00 in interest
• C)the amount of interest payable will fall each month
• D)the amount of the loan outstanding (owing)will fall at an increasing rate as the loan progresses.
• E)All of these.

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Definitions:

Growth Rate

The measure of an entity’s growth, expressed in percentage terms, typically calculated for revenue or profit over a specific period.

Transaction Costs

Expenses incurred when buying or selling securities, including commissions, taxes, and other fees.

Stock Dividend

A stock dividend is a payment made in the form of additional shares rather than cash, proportional to the number of shares already owned.

Market Value

Market value refers to the current price at which an asset or service can be bought or sold in the marketplace.