Question

Suppose home owners owe $7 trillion in mortgage loans. Instructions: Enter your responses as a whole number. In part b, do not include a negative sign (-) with your answer. If the mortgage interest rate is 5 percent, approximately how much are home owners paying in annual mortgage interest?

Answer 1

Answer:

Amount will be equal to $0.35 trillion

Explanation:

Total mortgage loans loans = $7 million.

Mortgage interest rate = 5%

We have to calculate amount which is paid by home owner in annual mortgage interest.

Amount will be equal to

Amount = Total mortgage loans $\times$ mortgage interest rate

= $7$\times$0.05 = $0.35 trillion

So the amount will be equal to $0.35 trillion