You Are Considering Two Payment Options on a $700,000 25-Year

question 27

Multiple Choice

You are considering two payment options on a $700,000 25-year mortgage having an interest rate of 4% 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) $3,683
• B) $3,999
• C) $2,946
• D) $3,695
• E) $3,734

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Definitions:

Annulled

A legal declaration that invalidates a marriage, contract, or another legal agreement, making it as though it never existed.

Intimidation

Intimidation is the act of making others fear that they will suffer harm or adverse consequences, often used to influence behavior or decisions against their will.

United States Law

The body of laws, regulations, and judicial decisions that governs the legal system in the United States.

Unilateral

Pertaining to an action or decision made by one party or side without the agreement or consent of others.