A House Is Appraised at $298 000 and You Have

question 65

Multiple Choice

A house is appraised at $298 000 and you have a down payment of $25000 .CMHC charges the following rates on the loan to value ratio: Up to and including 80 percent,2.40 percent; up to 85 percent,2.80 percent; up to 90 percent,3.10 percent; up to 95 percent 4.00 percent.What will be the approximate total amount of the mortgage if the CMHC fee is included in it?

• A)$280 152
• B)$280 644
• C)$281 463
• D)$283 920

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Definitions:

Financial Ground

The state of financial stability or condition of an individual or organization.

Operating Lease

A lease agreement for short-term leasing of assets without transferring ownership rights.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Financial Lease

A type of lease wherein the lessee has possession and control of an asset during its significant life but does not own the asset, effectively treating it as a loan with asset as collateral.