A Young Couple Buying Their First Home Borrows $72,000 for 28

question 10

Multiple Choice

A young couple buying their first home borrows $72,000 for 28 years at 8.8%, compounded monthly, and makes payments of $577.59. After 2 years, they are able to make a one-time payment of $5,000 along with their 24^th payment. How much will the couple save over the life of the loan by paying the extra $5,000? Round your answer to the nearest dollar. ​

• A)$344,731
• B)$43,410
• C)$33,410
• D)$317,006
• E)$66,820

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Definitions:

Arbitrariness

The lack of necessary or logical connection between a word or symbol and its meaning, illustrating how cultural conventions shape language.

Regularity

The condition of conforming to a pattern, rule, or standard, typically resulting in predictability or uniformity within a specific context.

Linguistic Competence

Linguistic competence is the ability of an individual to understand and use the rules of a language, including its grammar, vocabulary, and pronunciation.

Linguistic Performance

The behavior or responses actually produced by a cognitive processor engaged in a particular cognitive activity involving language. Contrast with linguistic competence.