Rami has contracted a 20-year, $350,000 fixed-rate mortgage at a rate of 5%, compounded semi-annually. The Bank of Canada 5-year rate is 5.25%. If heating and property costs amount to $6,000 a year, what is his GDS ratio? Rami’s gross annual income is $120,000 and mortgage payments are monthly. Round to the nearest percent. Select one: a. 25% b. 32% c. 28% d. 34%

Rami has contracted a 20-year, $350,000 fixed-rate mortgage at a rate of 5%, compounded semi-annually. The Bank of Canada 5-year rate is 5.25%. If heating and property costs amount to $6,000 a year, what is his GDS ratio? Rami’s gross annual income is $120,000 and mortgage payments are monthly. Round to the nearest percent. Select one: a. 25% b. 32% c. 28% d. 34%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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