Adrian Is a Single Man and Wants to Save Up

question 43

Multiple Choice

Adrian is a single man and wants to save up enough money to put as a down payment on a new house in 5 years. He has read that the best way to purchase a house is with a 20% down payment. He has a large income and very little debt right now so he can afford to save a substantial amount of money every month. He is asking you for some advice to help him reach his goal.
-It is now 5 years later and Adrian has saved up enough money to make a 20% downpayment on a new house. He will have to borrow $135,000 at an annual rate 6% for 30 years, compounded monthly. What will his monthly mortgage payment be?

• A) $1,199.55
• B) $809.39
• C) $779.98
• D) $397.50

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Definitions:

Suprachiasmatic Nucleus

A small region of the brain in the hypothalamus, responsible for controlling circadian rhythms.

Optic Chiasm

Junction of the optic nerves, one from each eye, at which the axons from the nasal halves of the retinas cross to the brain’s opposite side.

Hypothalamus

A region of the brain that regulates vital bodily functions, including temperature, hunger, thirst, fatigue, sleep, and circadian rhythms.