TOPIC:Normal distribution.
Let Xrepresent the interest rate offered on a 30-year fixed mortgage. X is found to be...
A sample of 30-year fixed mortgage rates at 36 randomly chosen credit unions yields a mean rate of 5.34% and a sample standard deviation of 0.64%. A sample of 30-year fixed mortgage rates at 25 randomly selected banks yields a mean rate of 5.16% and a sample standard deviation of 0.52%. In order to test the mean rates different between credit unions and banks, we would like to find the t test statistic first. What is the t test statistic?...
Exercise 8-7 Algo In order to estimate the mean 30-year fixed mortgage rate for a home loan in the United States, a random sample of 15 recent loans is taken. The average calculated from this sample is 7.85%. It can be assumed that 30-year fixed mortgage rates are normally distributed with a standard deviation of 0.6%. Compute 90% and 95% confidence intervals for the population mean 30-year fixed mortgage rate. Use Table 1. (Round intermediate calculations to 4 decimal places....
Ten years ago you obtained a 30-year mortgage for $400,000 with a fixed interest rate of 3% APR compounded monthly. The mortgage is a standard fixed rate mortgage with equal monthly payments over the life of the loan. What are the monthly fixed mortgage payments on this mortgage (i.e., the minimum required monthly payments to pay down the mortgage in 30 years)? What is the remaining loan balance immediately after making the 120th monthly payment (i.e., 10 years after initially...
If you obtain a $200,000. 30 year fixed rate mortgage at 6% with two points at closing but sold your house and paid off the mortgage after five years. what were the effective interest rate be over this five-year period ?
Mortgage rates: Following are interest rates (annual percentage rates) for a 30-year fixed rate mortgage from a sample of lenders in Macon, Georgia for one day. It is reasonable to assume that the population is approximately normal. 4.754 4.372 4.174 4.678 4.424 4.227 4.123 4.254 3.951 4.291 4.414 Send data to Excel Part: 0/2 Part 1 of 2 (a) Construct a 95% confidence interval for the mean rate. Round the answer to at least four decimal places. A 95% confidence...
You borrow $500,000 to purchase a house. The mortgage is a 30-year fixed rate mortgage, with monthly payments. A. Assume that you have good credit, and can borrow money at a 3.75% annual interest rate. What will your monthly payment be? B. Now, assume that you have lousy credit, and must pay a 6.5% annual interest rate to obtain a mortgage. What will your monthly payment be? C. Having lousy credit can be costly. How much additional interest will you...
6.33 Let x be a continuous random variable that is normally distributed with a mean of 25 and a standard deviation of 6. Find the probability that x assumes a value a. between 28 and 34 b. between 20 and 35 6.34 Let x be a continuous random variable that has a normal distribution with a mean of 30 and a stan- dard deviation of 2. Find the probability that x assumes a value a. between 29 and 35 b....
You plan to take out a 30-year fixed rate mortgage for $225,000. Let PC) be your monthly payment if the interest rate is r% per year, compounded monthly. Interpret the equations (a) P(6) = 1348.99 and (b)P (6) = 144.66. (a) Interpret P(6) = 1348.99. Select the correct answer below. O A. If the interest rate on the mortgage is 7%, the monthly payment will be $1348.99. OB. If the interest rate on the mortgage is 6%, the monthly payment...
A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0 percent with zero points or at a rate of 5.5 percent with 2.25 points. How long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is not invested?
You take out a 30-year fixed-rate mortgage for $100,000 with an interest rate of 12% (APR). Part 1 What is the monthly payment?