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:

Basket

A collection or grouping of goods, assets, or financial instruments, often used for diversification or index construction purposes.

Mutual Fund

An investment vehicle in which investors contribute to a fund that uses their pooled money to invest in stocks, bonds, and other financial assets. The fund owns the assets, while the investors own shares of the fund.

Investor

A person or organization that invests money expecting to earn financial profits.

Bond

A security reflecting a relatively long-term debt relationship between the issuer (borrower) and the buyer (lender).