You Have a 30-Year, $160,000 Mortgage

question 94

Multiple Choice

You have a 30-year, $160,000 mortgage. The interest rate is 4.75%. If you decide to pay $1,000 as your first payment, by how much will you prepay your mortgage?

• A)$165.36
• B)$170.39
• C)$175.03
• D)$179.00
• E)$834.64

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Definitions:

Acctrecv.

Short for "accounts receivable," this term denotes money owed to a company by its customers for goods or services delivered but not yet paid for.

Mortgage

A loan secured by the collateral of specified real estate property that the borrower is obliged to pay back with a predetermined set of payments.

Holding Periods

The length of time an investment is held before being sold, affecting the tax treatment of any gains or losses.

Partnership %

The percentage of ownership or profit-sharing assigned to each partner in a partnership agreement, determining the distribution of earnings and losses.