Five Years Ago You Took Out a 30-Year Mortgage with an APR

question 21

Multiple Choice

Five years ago you took out a 30-year mortgage with an APR of 6.5% for $200,000. If you were to refinance the mortgage today for 20 years at an APR of 4.25%, how much would your monthly payment change by?

• A) The monthly payment will increase by $104.79.
• B) The monthly payment will decrease by $104.79
• C) The monthly payment will increase by $343.12.
• D) The monthly payment will decrease by $343.12.

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Definitions:

Daily Basis

Refers to activities or transactions that occur every day as a regular part of an operation or process.

Retail Store

A physical location where consumers can purchase goods or services directly from a business.

Market Segments

The process of dividing a target market into smaller, more defined categories of consumers who share similar characteristics and needs.

Principal Criteria

The main or most important standards used to evaluate options or make decisions.