Consider a mortgage loan of $300,000, repayable over 25 years, with 300 equal monthly payments (beginning at the end of the next month). If the nominal interest rate is 6% (compounded semi-annually), what is the amount of the monthly payment?

$1599.51

$833.33

$1200.13

$1919.41

$1777.77

A one-year investment project is expected to generate cash flow of $11,000 in one year. What is its internal rate of return (IRR) per month, if its initial cost is $10,000? 

0%

$1.10

0.10%

0.79741%

0.83333%

We suggest you invest in a 3-year progressive rate investment certificate. The interest rate attached to it (compounded annually) increases each year. The interest rates offered are as follows, for each year: Year 1: rate of 4.00%; Year 2: rate of 5.00%; Year 3: rate of 6.00%. What will be the average annual interest rate after three years associated with this investment? 

0.05%

0.005%

5.5433%

6.7575%

4.9968%

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Question 1 To calculate the amount of the monthly payment for a mortgage loan of 300000 r... View the full answer