You Are Currently Borrowing $175,000 to Buy a House

question 32

Multiple Choice

You are currently borrowing $175,000 to buy a house. The mortgage is for 15 years at 6%. How much would you save each month if you could finance this amount at 5% for the same time period?

• A)$84.37
• B)$86.27
• C)$88.95
• D)$90.24
• E)$92.86

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Definitions:

Basic Trust

A sense of trust and security fundamentally formed during infancy, as outlined in Erik Erikson's stages of psychosocial development.

Autonomy

The capacity to make an informed, uncoerced decision; often associated with independence and self-governance.

Competence

The ability to do something successfully or efficiently.

Identity

Identity refers to the qualities, beliefs, personality traits, and expressions that make a person (or group) distinct.