A Homeowner Will Need $37,632 in 2 Years to Pay

question 27

Short Answer

A homeowner will need $37,632 in 2 years to pay off a balloon mortgage on her house,but she has only saved $30,000 so far.At what annual interest rate,compounded annually,should she invest her savings in order to pay off her mortgage in 2 years?

---

Definitions:

Orphanages

Institutions dedicated to the care of children whose parents are deceased or otherwise unable to care for them.

Basque Language

A language of the Basque people, indigenous to the Pyrenees region of France and Spain, characterized by its pre-Indo-European roots.

Ambiguous Sound

A sound that can be interpreted in more than one way, often depending on the listener's perspective or context.

Immediate Context

The direct or surrounding environment in which something exists or occurs, which can significantly influence its meaning or effect.