This morning, you borrowed $150,000 to buy a house. The mortgage rate is 7.35 percent

This morning, you borrowed $150,000 to buy a house. The mortgage rate is 7.35 percent. The loan is to be repaid in equal monthly payments over 20 years. The first payment is due one month from today. How much of the second payment applies to the principal balance? (Assume that each month is equal to 1/12 of a year.)    A.  $268.84 B.  $277.61 C.  $917.06 D.  $925.83 E.  $1,194.67

109.	Western Bank offers you a $21,000, 9-year term loan at 8 percent annual interest. What is the amount of your annual loan payment?    A.  $3,228.50 B.  $3,361.67 C.  $3,666.67 D.  $3,901.18 E.  $4,311.07

110.

First Century Bank wants to earn an effective annual return on its consumer loans of 10 percent per year. The bank uses daily compounding on its loans. By law, what interest rate is the bank required to report to potential borrowers?    A.  9.23 percent B.  9.38 percent C.  9.53 percent D.  9.72 percent E.  10.00 percent APR = 365 × [(1 + 0.10)1/365 - 1] = 9.53 percent

111.	Downtown Bank is offering 2.2 percent compounded daily on its savings accounts. You deposit $8,000 today. How much will you have in your account 11 years from now?    A.  $10,190.28 B.  $10,714.06 C.  $11,204.50 D.  $11,336.81 E.  $11,414.14 FV = $8,000 × [1 + (0.022/365)]11 × 365 = $10,190.28