Chapter 8 quiz.docx - Review Test Submission Quiz 8 Amortization(Chapter 8 Course Test Status Attempt Score Results Displayed 2019 Cost Capital Project

# Chapter 8 quiz.docx - Review Test Submission Quiz 8...

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Review Test Submission: Quiz 8 - Amortization (Chapter 8) Course 2019 Cost Capital Project Analysis Test Quiz 8 - Amortization (Chapter 8) Status Completed Attempt Score 83.35 out of 100.02 points Results Displayed All Answers, Submitted Answers, Correct Answers, Feedback, Incorrectly Answered Questions Question 1 16.67 out of 16.67 points Say you bought a house for \$275,000 with 10% down, and financed it from a bank for a 30-year term at 4.75% interest per year compounded monthly. If you paid an extra \$1,000 every year (end of 12th month) along with the regular month-end payments, which will be true from the following? Selected Answer: You will have to make 316 payments of \$1,291.08 each, pay \$1,000 at the end of the first 26 years, & make a 317th payment of \$1,194.97. Answers: You will be able to cut off 42 full payments and a partial payment from the loan. You will have to make only 315 payments. You will have to make 316 payments of \$1,291.08 each, pay \$1,000 at the end of the first 26 years, & make a 317th payment of \$1,194.97. You will have to make 316 paymnents of \$1,291.08 each & make a 317th payment of \$1,190.26. Respon se Feedba ck: Answer is 3. You will have to make 316 paymnents of \$1,291.08 each & 317th payment of \$1,194.97.

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• Spring '14
• MerwanB.Mehta

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