Carrie Bought a House Five Years Ago for $150,000

question 21

Multiple Choice

Carrie bought a house five years ago for $150,000. At that time she borrowed $140,000 from her bank. The house is now worth $162,000. Her PMI will automatically be dropped when her mortgage balance drops to

• A) $117,000.
• B) $122,000.
• C) $140,000.
• D) $150,000.
• E) $162,000.

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Definitions:

Unstable Work Opportunities

Employment situations that are irregular, unpredictable, and precarious, often without long-term security or benefits.

Hourly Wages

The rate of pay employees receive for one hour of work.

Market Equilibrium

A state in a market where supply equals demand, resulting in stable prices and no tendency for change until external factors impose it.

Market Wage Rate

The prevailing pay rate for a specific job in a specific market or industry, determined by supply and demand.