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Suppose home owners owe $7 trillion in mortgage loans. Instructions: Enter your responses as a whole number. In part b, do not include a negative sign (-) with your answer. If the mortgage interest rate is 5 percent, approximately how much are home owners paying in annual mortgage interest?

User Alexeis
by
7.4k points

1 Answer

5 votes

Answer:

Amount will be equal to $0.35 trillion

Step-by-step explanation:

Total mortgage loans loans = $7 million.

Mortgage interest rate = 5%

We have to calculate amount which is paid by home owner in annual mortgage interest.

Amount will be equal to

Amount = Total mortgage loans
* mortgage interest rate

= $7
*0.05 = $0.35 trillion

So the amount will be equal to $0.35 trillion

User Tinkerer
by
7.8k points
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