Question

Use the table to determine the total amount paid on a 20 year fixed loan, at 5.5%, of $160,000. A 5-column table with 4 rows titled Monthly Payments per 1000 dollars of mortgage. Column 1 is labeled Interest Rate (percent) with entries 5, 5.5, 6, 6.5. Column 2 is labeled 10 Years with entries 10.61, 10.86, 11.11, 11.36. Column 3 is labeled 20 years with entries 6.60, 6.88, 7.17, 7.46. Column 4 is labeled 30 years with entries 5.37, 5.68, 6.00, 6.33. Column 5 is labeled 40 years with entries 4.83, 5.16, 5.51, 5.86. a. $160,000 c. $264,192 b. $203,254 d. $176,000 Please select the best answer from the choices provided A B C D Mark this and return

Answer 1

c

Explanation:

Answer 2

c. $264,192

Explanation:

Column 3, labeled 20 Years, would be the column you want for a 20-year loan.

Row 2, labeled 5.5%, would be the row you want for a 5.5% loan.

The value in the table at row 2 of column 3 appears to be 6.88. The is the amount of the payment per $1000 of loan value. A $160,000 loan will have a monthly payment that is 160 times $6.88 = $1100.80.

The 20-year loan will be paid back with 20×12 = 240 monthly payments. The total amount of those payments will be ...

240×$1100.80 = $264,192