You Take a Fixed-Rate Mortgage for $130,000 at 6

question 8

Multiple Choice

You take a fixed-rate mortgage for $130,000 at 6.75% for 30 years,monthly payments.At the end of year two,you unexpectedly inherit $15,000 from your now-favorite grandmother.You decide to apply this $15,000 to the principal balance of your loan.How much interest do you save over the life of the loan by doing this assuming that the mortgage is held to maturity?

• A) $76,089
• B) $96,325
• C) $61,089
• D) $79,637
• E) none of the above

Correct spelling mistakes.

Apply basic principles of capitalization correctly.

Follow standards for the use of numbers in writing.

Recognize and correct misuse of words.

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Definitions:

Erikson's Stage

A concept in developmental psychology, part of Erik Erikson's theory of psychosocial development, outlining eight stages that a healthy developing individual should pass through from infancy to late adulthood.

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Socioemotional Selectivity Theory

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Older Adults

Individuals who are in the later stages of life, often defined as being 65 years of age or older, facing unique health, social, and psychological challenges.