Question

Alex took out a 7/1 variable-rate mortgage for $140,000. The interest rate for

Answer 1

Answer:

D). $773.09

Explanation:

Alex's monthly payment of the mortgage in the course of the initial fixed-rate period would be $773.09.

Mortgage amount = $140,000

Initial period of the mortgage = 7 years

Total time period = 30 years

Interest rate = 5.25%

Monthly mortgage payment for Alex = P * r $(1 + r )^{n}$/$(1 + r) ^{n}$ - 1

= $773.09