Suppose You Are Buying Your First Home for $145, 000

question 38

Multiple Choice

Suppose you are buying your first home for $145, 000, and you have $15, 000 for your down payment.You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month.What will your monthly payments be?

• A) $741.57
• B) $780.60
• C) $821.69
• D) $862.77
• E) $905.91

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Definitions:

Adequacy of Consideration

The fairness of the value exchanged in a contract, ensuring that what is received is reasonable compared to what is given.

Neo-Expressionist

Referring to a modern art movement characterized by intense subjectivity and rough handling of materials.

Promissory Estoppel

A legal principle that prevents a party from going back on a promised commitment, even if a legal contract does not exist, due to the reliance of the other party on that promise.

Creditor's Promise

A declaration made by a creditor, indicating their intention to extend credit to a debtor under agreed terms.