Humber/Ontario Real Estate Course 2 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Buyer Smith wants to buy a $600,000 log home and needs a $334,000 mortgage. With a three-year term, 15-year amortization, and a 7.5% interest rate, what would the monthly payments be if the payment factor is 9.205137?

$3,075
$2,505
$3,843
$5,523

The correct answer is: $3,075

To calculate the monthly mortgage payment, you can use the formula for mortgage payments: M = P * f Where: M = Monthly payment P = Mortgage amount f = Payment factor In this case: P = $334,000 f = 9.205137 Substitute the values into the formula: M = $334,000 * 9.205137 M = $3,075 Therefore, the correct answer is A: $3,075. Options B, C, and D are incorrect because they do not reflect the accurate calculation based on the given mortgage amount, payment factor, and formula for mortgage payments.