Question 10 Sally is looking at mortgages. One lender presents her with an offer for a $180,000 loan with monthly payments of S 1, 215.00 over 20 years. She pull out her calculator and enters the following: N = 20, PMT = == - 1215, PV = 180000, FV = 0, and computes for the interest rate (i) Which of the following are corrections Sally should make to her entry? N should be 240 All of the Sally's entries are correct i should be 0, and she should calculate the FV PV should be 0, and FV should be 180,000

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter5: Making Automobile And Housing Decisions
Section: Chapter Questions
Problem 7FPE
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Question 10
Sally is looking at mortgages. One lender presents her with an offer for a $180,000 loan with monthly payments of S
1, 215.00 over 20 years. She pull out her calculator and enters the following:
N = 20, PMT =
==
-
1215, PV
=
180000, FV = 0, and computes for the interest rate (i)
Which of the following are corrections Sally should make to her entry?
N should be 240
All of the Sally's entries are correct
i should be 0, and she should calculate the FV
PV should be 0, and FV should be 180,000
Transcribed Image Text:Question 10 Sally is looking at mortgages. One lender presents her with an offer for a $180,000 loan with monthly payments of S 1, 215.00 over 20 years. She pull out her calculator and enters the following: N = 20, PMT = == - 1215, PV = 180000, FV = 0, and computes for the interest rate (i) Which of the following are corrections Sally should make to her entry? N should be 240 All of the Sally's entries are correct i should be 0, and she should calculate the FV PV should be 0, and FV should be 180,000
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