Test Your Knowledge - Quantitative Methods for Finance

Suppose that a mortgage bank is willing to lend at an interest rate that makes the present value of an annuity that pays $1 per month for 360 months (30 years) equal to $200. If you were to borrow $1,000,000 from this bank in the form of a 30-year fully amortizing mortgage, what would your monthly mortgage payments be?

A) $200

B) $5000

C) $2778

D) None of the above

Reveal the Answer

The answer is B) $5000

About Quantitative Methods for Finance Professional Certificate:

This hands-on certificate program develops the fundamental desk-ready skills essential for quantitative roles in finance, including trading, structuring, valuation, risk management, regulation, and financial engineering. 

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