A Homeowner Has $200,000 Home with a 20-Year Mortgage,paid Monthly

question 82

Multiple Choice

A homeowner has $200,000 home with a 20-year mortgage,paid monthly at 7.25% APR.After five years he receives $50,000 as an inheritance.If he pays this $50,000 toward his mortgage along with his regular payment,by approximately how many years will it reduce the amount of time it takes him to pay off his mortgage?

• A)6 years
• B)5 years
• C)4 years
• D)3 years

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Definitions:

National Saving

The total amount of savings generated within a country, comprising both private savings and the government's budget surplus.

Domestic Investment

Refers to the total amount of money invested in resources within a country's own borders, including investments in businesses, infrastructure, and real estate by both public and private sectors.

Exchange Rate

The amount one currency is valued when converted into another currency.

Pesos

The currency used in several countries, including Mexico and the Philippines, often symbolized by "$".