Which One of the Following Financing Terms Will Provide the Lowest

question 33

Multiple Choice

Which one of the following financing terms will provide the lowest monthly payment for a fixed-rate, $175,000 mortgage?

• A)10-year, 5.5%
• B)10-year, 6.0%
• C)15-year, 5.5%
• D)15-year, 6.0%
• E)30-year, 5.5%

---

Definitions:

Electricity

A form of energy resulting from the existence of charged particles such as electrons or protons, manifesting as an attraction or repulsion between those particles.

Total impedance

The overall resistance to the flow of alternating current, combining the effects of resistances, inductive reactance, and capacitive reactance in a circuit.

Applied voltage

The external voltage applied across a component or circuit, causing electric current to pass through it.

Circuit

A closed path through which electric current flows or may flow.