Five Years Ago You Took Out a 30-Year Mortgage with an APR

question 25

Multiple Choice

Five years ago you took out a 30-year mortgage with an APR of 6.5% for $200,000.If you were to refinance the mortgage today for 20 years at an APR of 4.25% ,how much would you save in total interest expense?

• A)$176,846
• B)$75,848
• C)$151,696
• D)$100,998

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Definitions:

Facial Feedback

The hypothesis that facial movements can influence emotional experiences, suggesting that expressions can contribute to feelings.

Basic Emotion

Fundamental emotions that are hard-wired into the brain and universally recognized, such as happiness, sadness, fear, and anger.

Visual Cliff

A psychological experiment setup to test infants' and young animals' perception of depth and their fear of falling.

Ambiguous

Something that can be understood in more than one way or is unclear because it has multiple interpretations.