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question 242

Multiple Choice

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Effect of Down Payment on the Cost of a $\$ 120,000$ Home with Interest at $8 \%$


$\begin{array}{cccc}\text { Down Payment } & \text { Percent of House Price } & \begin{array}{c}\text { Monthly Payment } \\30 \text { Years }\end{array} & \begin{array}{c}\text { Total Payment } \\30 \text { Years }\end{array} \\\$ 0 & 0 \% & \$ 880.52 & \$ 316,987 \\\$ 6,000 & 5 \% & \$ 836.49 & \$ 301,136 \\\$ 12,000 & 10 \% & \$ 792.47 & \$ 285,289 \\\$ 24,000 & 20 \% & \$ 704.41 & \$ 253,588 \\\$ 30,000 & 25 \% & \$ 660.39 & \$ 237,740 \\\$ 36,000 & 30 \% & \$ 616.36 & \$ 221,890\end{array}$ If you are obtaining a $120,000 home with a 30-year 8% loan, what would you save in the total payments by increasing your down payment from $6,000 to $36,000?

• A) $79,246
• B) $23,773.80
• C) $220.13
• D) $221,890
• E) $616.36

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Definitions:

Matched Pairs

A study design where each subject is paired with a similar subject, or the same subject is tested under different conditions, to reduce variability in the data.

Sample Values

Specific measurements or observations collected from a portion of a larger group or population for analysis.

Matched Pairs T-test

A statistical procedure that compares the average values of two connected groups to ascertain if the difference between them is significant from a statistical standpoint.

Sleep Effect

A concept in psychology and physiology referring to the impact of sleep quality and duration on various aspects of an individual’s health and daily performance.