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

question 10

Multiple Choice

Five years ago you took out a 30-year mortgage with an APR of 6.20% for $206,000. If you were to refinance the mortgage today for 20 years at an APR of 3.95%, how much would you save in total interest expense?

• A) $200,503
• B) $150,377
• C) $50,126
• D) $100,251

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Definitions:

Behavior Therapies

A type of psychotherapy that focuses on modifying problematic behaviors through reinforcement strategies and conditioning.

Social Interaction

The process through which individuals act and react in relation to others, fostering communication and relationship development.

Psychodynamic Therapy

A form of depth psychology, its primary focus is to reveal the unconscious content of a client's psyche in an effort to alleviate psychic tension.

Client-Centered Therapy

A humanistic psychotherapy developed by Carl Rogers, focusing on providing a supportive environment that encourages self-discovery and personal growth.