Your Real Estate Agent Mentions That Homes in Your Price

question 90

Multiple Choice

Your real estate agent mentions that homes in your price range require a payment of approximately $1,200 per month over 30 years at 9% interest.What is the approximate size of the mortgage with these terms?

• A) $128,035
• B) $147,940
• C) $149,140
• D) $393,120

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Definitions:

Substitute Goods

Products or services that can be used in place of one another, fulfilling the same needs or wants of the consumer.

Normal Goods

Goods for which demand increases as the income of the consumer increases, exhibiting a direct relationship between income and demand.

Complementary Goods

Goods that are typically consumed together, such that the demand for one increases when the price of the other decreases.

Substitute Goods

Goods that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.