If a Fully Amortizing 30-Year Fixed Rate Mortgage Was Originally

question 25

Multiple Choice

If a fully amortizing 30-year fixed rate mortgage was originally taken at $200,000,but now has a balance of $50,385,how many more monthly payments will it take before it will be paid off?

• A)45 months
• B)51 months
• C)55 months
• D)90 months

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Definitions:

Market Price

Market price is the current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand dynamics.

Output

The total amount of goods or services produced by a company or industry, often measured over a specific period.

Minimum Price

A price floor set by the government, below which a product cannot be sold legally, aiming to ensure fair prices for producers.

Short Run

The short run is a time period in economics during which at least one input is fixed, limiting the ability of the economy or firm to adjust its output levels.