The Difference Between the Monthly Payments on a $120,000 Home

question 32

Multiple Choice

The difference between the monthly payments on a $120,000 home at 6 ½% and at 8% for 25 years is (use the table in the handbook) :

• A) $81.12
• B) $151.02
• C) $115.20
• D) $91.12
• E) None of these

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Definitions:

MRS

An abbreviation for Marginal Rate of Substitution, which is the rate at which a consumer is willing to exchange quantities of one good for another while maintaining the same level of utility.

Price Ratio

The proportionate comparison or ratio of the prices of two different goods or services.

Family and Medical Leave Act

A U.S. federal law that provides eligible employees with unpaid, job-protected leave for specified family and medical reasons.

Remedies

Legal means through which a right is enforced or the violation of a right is prevented, redressed, or compensated.