You just borrowed 5900,000 using a 25 year home loan that's interest-only for the first 2 years, and principal and interest (P) for the remaining 23 years. The interest rate is 3.72% pa compounding monthly which is not expected to change. Which of the following statements is NOT correct? Select one OaThe effective monthly rate is 0.0031 per month, given as a decimal. If the interest rate rises, the 10 and P&d monthly payments will rise Ob if the 10 term was one year shorter so the P& term was one year longer, then the monthly payments over the P& term would be higher. O The 10 loan's perpetuity factor is 322.580645, while the P&d loan's annuity factor is 185.293235 Od The 10 loan payments will be $2,790 per month, rounded to the nearest cent Oe The P& loan payments will be $4,857.17 per month rounded to the nearest cent

You just borrowed 5900,000 using a 25 year home loan that's interest-only for the first 2 years, and principal and interest (P) for the remaining 23 years. The interest rate is 3.72% pa compounding monthly which is not expected to change. Which of the following statements is NOT correct? Select one OaThe effective monthly rate is 0.0031 per month, given as a decimal. If the interest rate rises, the 10 and P&d monthly payments will rise Ob if the 10 term was one year shorter so the P& term was one year longer, then the monthly payments over the P& term would be higher. O The 10 loan's perpetuity factor is 322.580645, while the P&d loan's annuity factor is 185.293235 Od The 10 loan payments will be $2,790 per month, rounded to the nearest cent Oe The P& loan payments will be $4,857.17 per month rounded to the nearest cent

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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