You Are Considering Two Payment Options on a $500,000 20-Year

question 318

Multiple Choice

You are considering two payment options on a $500,000 20-year mortgage having an interest rate of 2.8% compounded monthly. The first option is to make monthly payments at the start of each
Month, while the second option is to make payments at the end of each month. How much interest
Will be saved by choosing the first option?

• A) $1,521.60
• B) $1,721.60
• C) $1,921.60
• D) $2,121.60
• E) $2,321.60

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Definitions:

Primary Reactions

Initial, innate responses or reflexes seen in infants as part of their early developmental stages.

New Adaptation

A process by which individuals or species undergo changes or develop new traits over time to better interact with their environment.

Sensorimotor Behavior

pertains to activities involving both sensory perception and muscular movement, fundamental in early stages of human development.

Thumb Sucking

A common behavior in infants and young children where they place their thumb into their mouth for comfort or self-soothing.