Use the Table to Determine the Maximum 30-Year Loan, Rounded } \end{array}">$$\begin{array} { l c c c c } \text { cellpadding="0" cellspacing="0" align="center" width } = " 99 \% " \text { border="1"> } \end{array}$$

question 195

Multiple Choice

Use the table to determine the maximum 30-year loan, rounded to the nearest dollar, that you could obtain if you are given the loan rate 6% and the maximum house payment you can afford is $2,430 per month. } \end{array}">$$\begin{array} { l c c c c } \text { cellpadding="0" cellspacing="0" align="center" width } = " 99 \% " \text { border="1"> } \end{array}$$

$\text { Monthly Cost to Finance } \$ 1,000$

$\begin{array}{lcccc} &{\text { Number of Years Financed }} \\\text { Rate of } & 5 \text { Years } & 10 \text { Years } & 20 \text { Years } & 30 \text { Years } \\\text { Interest } & \mathrm{N}=60 & \mathrm{~N}=120 & \mathrm{~N}=240 & \mathrm{~N}=360 \\6.0 \% & & & & \\7.0 \% & 19.33 & 11.10 & 7.16 & 6.00 \\8.0 \% & 19.80 & 11.61 & 7.75 & 6.65 \\9.0 \% & 20.28 & 12.13 & 8.36 & 7.34 \\& 20.76 & 12.67 & 9.00 & 8.05\end{array}$

• A) $40,500
• B) $4,374
• C) $405,000
• D) $52,488
• E) $437,400

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Definitions:

Idea Duplications

The process of creating replicas or copies of an original idea.

Evaluative Input

Feedback or information received that is assessed or judged, typically used for improvement or development purposes.

Graham Wallas

A social psychologist and educationalist who proposed one of the first models of the creative process in the early 20th century.

Creative Process

The series of thought patterns and mental techniques involved in producing new ideas or solving problems in innovative ways.