PLEASE ANS ALL QUESTIONS FOR THUMBS UP. WOULD REALLY APPRECIATE
Ques 1
Audrey has recently purchased a home with a $325,000 mortgage. She opted for monthly payments, a term of 5 years at a rate of 3.2%, and an amortization period of 25 years. Had Audrey chosen, instead, an accelerated bi-weekly payment, how much interest would she save over the life of the mortgage? Hint: You will need to determine the number of accelerated bi-weekly payments would be required to pay off the mortgage. Round to the nearest dollar.
$146,477
$127,959
$19,420
$18,518
Ques 2
Which statement is false?
If you expect interest rates to rise, you would prefer a fixed-rate over a variable-rate mortgage.
You are likely to be charged a lower interest rate on an insured mortgage than a conventional mortgage.
On-reserve land is often the property of the First Nation, thus individuals can only mortgage and own the home.
The premium on CMHC mortgage loan insurance is maxed at 4.5% for traditional down payments.
Ques 3
Isla, a conservative money manager, has a liquidity ratio of 9 months and current ratio of 5. Why is this not ideal?
Isla has insufficient liquidity to meet unexpected expenses.
Isla has excess liquidity, likely earning a low return.
Isla should maintain her liquidity in the form of a line of credit.
Isla has not been able to establish the minimum emergency fund.