Which of the Following Options Regarding a $200000 Mortgage,compounded Semi-Annually

question 53

Multiple Choice

Which of the following options regarding a $200000 mortgage,compounded semi-annually requires the lowest total interest payment?

• A)A 4.0 percent interest rate,paid monthly and amortized over 15 years
• B)A 3.5 percent interest rate,paid monthly and amortized over 20 years
• C)A 3.5 percent interest rate,paid biweekly and amortized over 18 years
• D)A 3.25 percent interest rate,paid monthly and amortized over 22 years

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Definitions:

Indirect Materials

Materials used in the production process that do not become part of the final product, such as lubricants and cleaning supplies.

Transaction Cost

The expenses incurred when buying or selling goods or services, including fees, communication charges, and other financial costs.

Management Cost

Expenses associated with the administration and operation of a business, including salaries of managers and costs of strategic activities.

Supplier Viability

The ability of a supplier to continue delivering products or services over time, maintaining financial stability and operational capability.