Lizzy Clar Bought a Home for $160,000, Putting Down $30,000

question 6

Multiple Choice

Lizzy Clar bought a home for $160,000, putting down $30,000. The rate of interest is 7% for 25 years. The total yearly mortgage payment is:

• A) $11,155.37
• B) $11,920.20
• C) $919.10
• D) $18,782.40
• E) None of these

---

Definitions:

Terminate

To bring to an end; this can relate to employment, contracts, or services, among others.

Corporate Alternative Minimum Tax

A parallel tax system aimed at ensuring that corporations pay at least a minimum amount of tax, regardless of deductions or credits that would otherwise lower their tax bill.

Exemption Amount

This refers to a specific dollar amount that taxpayers can claim for themselves and their dependents to reduce taxable income.

Parent-Subsidiary Group

A group consisting of a parent company and one or more subsidiaries, which are companies controlled by the parent company.