Consider the 20-Year Fixed-Rate Home Loan of $185,500 with an Interest

question 214

Multiple Choice

Consider the 20-year fixed-rate home loan of $185,500 with an interest rate of 6.75%. What is the monthly payment?

• A) $1,402.98
• B) $1,430.93
• C) $1,407.37
• D) $1,413.59
• E) $1,410.48

---

Definitions:

Safety Stock

Inventory kept on hand as a buffer against supply or demand uncertainties, ensuring that stockout situations are minimized.

Holding Costs

The expenses associated with storing unsold goods or materials, including storage, insurance, and opportunity costs.

Housing Costs

The expenses associated with acquiring, maintaining, and using a place to live, including rent, mortgage payments, taxes, and maintenance fees.

Material Handling

The logistics of moving, protecting, warehousing, managing, and disposing of materials and products from the start of production, through the distribution process, to consumption and eventual elimination.