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DochEvi [55]
2 years ago
11

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

Social Studies
1 answer:
slavikrds [6]2 years ago
6 0

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

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