If Closing Costs of $1,950 Are Associated with the Refinance

question 107

Multiple Choice

If closing costs of $1,950 are associated with the refinance of a mortgage that would reduce the monthly payment from $890 to $780,it would take approximately ________ months to cover these costs.

• A)8
• B)16
• C)18
• D)20
• E)22

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Definitions:

Horizontal

A direction or plane that runs parallel to the ground or horizon.

Income Elasticity

A measure of how much the demand for a product or service changes with a change in consumers' income.

Low-Quality Beef

Beef that is considered to be of inferior grade or quality due to factors like fat content, marbling, or age of the animal.

Income

Funds received routinely through work or investing activities.