A Home Buyer Buys a House for $2,155,000

question 91

Multiple Choice

A home buyer buys a house for $2,155,000. She pays 20% cash, and takes a fixed-rate mortgage for ten years at 7.70% APR. If she makes semi-monthly payments, which of the following is closest to each of her payment?

• A) $11,342.47
• B) $10,311.34
• C) $12,373.61
• D) $8249.07

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Definitions:

Open-Economy Macroeconomic Model

A model that analyzes an economy that engages in international trade, considering the impact of exports, imports, and capital flows.

Tariffs

Tariffs are taxes imposed by a government on imported goods and services to protect domestic industries, raise revenue, or influence trade balance.

Net Exports

The value of a country's exports minus the value of its imports, a key component in calculating a nation's GDP.

Government Budget Deficit

A financial situation where a government's expenditures exceed its revenues over a specified period, leading to borrowing or debt accumulation.