6.1-6.4 Review Bell Ringer

Front

What is the formula to calculate the BTUs needed for an air conditioner based on room dimensions and insulation?

Back

BTUs = (Width in feet) x (Height in feet) x (Length in feet) x (Insulation level) x (Exposure factor) / 2

Front

What does APR stand for in the context of mortgages?

Back

APR stands for Annual Percentage Rate, which represents the yearly interest rate charged on a loan.

Front

How do you calculate the principal portion of a mortgage payment?

Back

The principal portion can be calculated using the formula: Principal Payment = Total Monthly Payment - Interest Payment.

Front

What is the significance of the linear regression equation in real estate?

Back

The linear regression equation helps predict the rental price based on the square footage of an apartment.

Front

How do you determine the monthly rent from a linear regression equation?

Back

Substitute the square footage into the equation y = mx + b, where m is the slope and b is the y-intercept.

Front

What is prepaid interest in the context of home loans?

Back

Prepaid interest is the interest that is paid in advance for the period between the closing date and the end of the month.

Front

How do you calculate the monthly mortgage payment?

Back

Use the formula: M = P[r(1 + r)^n] / [(1 + r)^n – 1], where M is the total monthly mortgage payment, P is the loan principal, r is the monthly interest rate, and n is the number of payments.

Front

What is the formula for calculating the interest portion of a mortgage payment?

Back

Interest Payment = Loan Amount x Monthly Interest Rate.

Front

What is the purpose of a down payment when purchasing a home?

Back

A down payment reduces the loan amount and shows the lender that the borrower is financially responsible.

Front

How do you calculate the total cost of a mortgage over its lifetime?

Back

Total Cost = (Monthly Payment x Number of Payments) - Loan Amount.