You Take a Fixed-Rate Mortgage for $132,000 at 6

question 17

Multiple Choice

You take a fixed-rate mortgage for $132,000 at 6.75% for 30 years,monthly payments.At the end of the second year,you unexpectedly inherit $18,000 from your now-favorite uncle.You decide to apply this $18,000 to the principal balance of your loan.How many payments are remaining after the extra lump sum payment is made?

• A) 233.33
• B) 126.67
• C) 121.15
• D) 272.00
• E) none of the above

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Definitions:

Personal Taxes

Taxes levied on individuals' income or wealth by a government.

Progressive Tax

A taxation system in which the tax rate increases as the taxable amount increases, placing a higher burden on those who earn more.

Sales Taxes

Levies imposed by governments on the sale of goods and services, contributing to public revenue.

Constant-rate

A process or condition that occurs at a steady, unchanging rate over time.