Wilma Is Ecstatic About the Purchase of Her First House

question 88

Multiple Choice

Wilma is ecstatic about the purchase of her first house.She has taken out a 30-year mortgage at a 5.25 percent interest rate,and her mortgage broker has informed her that the interest rate will not change for the life of the loan.What type of loan did Wilma take out?

• A) Fixed-rate loan
• B) Variable-rate loan
• C) Equity loan
• D) Long loan

---

Definitions:

Two-year Period

A specific timeframe often referenced in tax or legal contexts, which might relate to limitations, qualifications, or assessments.

Involuntary Conversion

A forced exchange of property or assets, often due to theft or natural disaster, that may have tax implications.

Two Years

A time period equal to 24 months or 730 days, often cited in various contexts such as investment holding periods for tax purposes.

Personal-use Asset

An asset primarily used for personal enjoyment or living purposes, not for business or investment aims.