You Just Bought a Home for $250,000 and Are to Make

question 69

Multiple Choice

You just bought a home for $250,000 and are to make monthly payments of $1,834.41 for 30 years at 8% APR.Suppose you add $298.44 each month to the $1,834.41 house payment making your monthly payment $2,132.85.This extra amount is applied to the principal.How long will it take you to pay off your loan of $250,000? Use a calculator to determine your answer.

• A)It will take under 15 years.
• B)It will take about 16 years.
• C)It will take slightly over 19 years.
• D)It will take slightly over 20 years.

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