(1-4) Wally Bee purchased a new home for $250,000 with a $40,000 down payment. He financed the remainder with a 4% mortgage for 30 years.
QUESTION 1
What is his monthly payment?
$1089.66
$946.31
$988.32
$1002.54
QUESTION 2
If Wally had originally planned on using a 15 year mortgage (also at 4%), how much would Wally save in interest expense compared to the 30 year mortgage?
$72,658
$67,344
$81,308
$63,564
QUESTION 3
Prepare a two month amortization schedule. (Round interest factor to 4 decimals) What is the principal reduction for month 2?
Month Loan Balance Payment InterestPrincipal
0
1
2
$310.56
$351.54
$401.65
$388.21
QUESTION 4
Wally's bank has offered to lower the 4% interest rate on his 30 year loan to 3.75% if Wally will pay 1 1/4 points. What will the points cost Wally?
$1895
$2625
$3155
$3365
QUESTION 5
Tedd E. Bear has an annual salary of $48,000 with no other loans outstanding. Using the 25% guideline from class and with a 20% down payment, how expensive of a home can Tedd purchase using a 4%, 30 year mortgage?
$251,353
$268,246
$279,423
$261,825
need answers in 50 min,is it possible?