Solve the Problem $8 \%$ Option 2: a 15-Year Loan At $7 \%$

question 176

Multiple Choice

Solve the problem.
-You need a $95,921 loan. Compute the monthly payment for each of the loan options listed below. Assume that the loans are fixed rate. Option 1: a 30 year-loan at an APR of $8 \%$
Option 2: a 15-year loan at $7 \%$

• A) Option 1: \(\$ 716.87\)
• Option 2: \(\$ 900.42\)
• B) Option 1: \(\$ 703.83\)
• Option 2: \$862.17
• C) Option 1: \(\$ 714.05\)
• Option 2: \(\$ 891.03\)
• D) Option 1: \(\$ 695.13\)
• Option 2: \(\$ 836.60\)

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Definitions:

Investment Fraud

A scheme or deception relating to financial investments that results in financial loss for investors.

Investment Returns

The profit or loss derived from investing in securities, real estate, or other assets, typically expressed as a percentage.

Market Liquidity

The extent to which a market allows assets to be bought and sold quickly without affecting the asset's price significantly.

Liquidity Risk

The risk of being unable to quickly convert assets into cash without significant loss in value, affecting a company's or individual's ability to meet short-term obligations.