Humber/Ontario Real Estate Course 4 Exam Practice

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Mr. and Mrs. Patel are calculating mortgage payments for a $300,000 mortgage with a 25-year amortization at a 6.75% interest rate. With a weekly mortgage payment factor of 1.577522, what is their weekly mortgage payment?

$506.25
$473.26
$947.12
$1,069.72
$520.15
$595.35

The correct answer is: $473.26

The weekly mortgage payment factor is used to calculate the weekly mortgage payment for a given mortgage amount, amortization period, and interest rate. With a mortgage amount of $300,000 and an interest rate of 6.75%, a weekly mortgage payment factor of 1.577522 would result in a weekly mortgage payment of $473.26. Option A is incorrect because it does not take into account the interest rate and uses a different mortgage payment factor. Option C is incorrect because it is double the correct answer and likely used the monthly mortgage payment factor instead of the weekly factor. Option D is incorrect because it is significantly higher than the correct answer and would result in overpaying the mortgage. Option E is incorrect because it is slightly higher than the correct answer and may have used a slightly different mortgage payment factor. Option F is incorrect because it is significantly higher than the correct answer and would result in overpaying the mortgage. It may have used a different mortgage payment factor or used an incorrect interest rate.