(Q. 10 IN B) YOU WANT TO BUY A HOUSE THAT COSTS $400,000. YOU MAKE...

8. (Q. 10 in B) You want to buy a house that costs $400,000. You make a 25%

down payment and finance the rest with a 15 year mortgage. The mortgage has

a five year renewal term for which the annual mortgage rate is 6.5%

compounded semi-annually. What will the remaining principal of the loan be at

the end of the 5-year term?

A) $229,787.77

B) $289,459.98

C) $304,514.42

D) $317,182.54

Answer A

065

1

0

.

%.

EAR

=

+

²

−

=

605625

(