Question: Adding a small amount to your monthly home mortgage payment will shorten the life of your loan. Adding $10 per month to your $540 monthly

Adding a small amount to your monthly home mortgage payment will shorten the life of your loan. Adding $10 per month to your $540 monthly mortgage payment will trim how many months from a 30 year, 5% mortgage of $100,000? Select the closest answer.

(a) 25 months

(b) 19 months

(d) 6 months

Step by Step Solution

★★★★★

3.32 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

PA 512 N 100000 550 per month so PA 512 N 1818182 Using G... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Engineering Economy Questions!

The following excerpt comes from an article titled Securities Counselors Eyes Cutting Duration in the February 17, 1992, issue of BondWeek, p. 5: Securities Counselors of Iowa will shorten the 5.3...

Steven B. (age 42) and Debra S. (age 41) Marshall are married and live at 426 East Twin Oaks Road, Sioux Falls, SD 57105. Steven is the regional manager for a restaurant chain (Moveable Feast), and...

A marketing innovation is the cash-back mortgage wherein the lender gives the borrower an up-front bonus cash payment. For example, if you borrow $100,000 on a 3% cash-back mortgage loan, the lender...

150. Adding a small amount to your monthly home mortgage payment will shorten the life of your loan. Adding $10 per month to your $540 monthly mortgage payment will trim how many months from a 30...

4-150. Adding a small amount to your monthly home mortgage payment will shorten the life of your loan. Adding $10 per month to your $540 monthly mortgage payment will trim how many months from a 30...

Engineering economics 15. Adding a small amount to your monthly home mortgage payment will shorten the life of your loan. Adding $10 per month to your $540 monthly mortgage payment will reduce how...

Adding a small amount to your monthly home mortgage payment will shorten the life of your loan.Adding $ 1 0 per month to your $ 5 4 0 monthly mortgage payment will trim how many months from a 3 0...

Kindly Show the step-by-step solution, Include conclusion, Thank You! Adding a small amount to your monthly home mortgage payment will shorten the life of your loan. Adding $100 per month to your...

a.You borrowed $200,000 to purchase a new home. How much is your monthly home mortgage payment if the annual interest rate is 4.5% and the number of years is 15? $1,530 $1,314 $1,732 $835 b. You have...

The Happy Life Insurance Company is a stock insurer licensed in a large western state. Its loss reserves are estimated at $9.5 million and its unearned premium reserves at $1.7 million. Other...

There are 10 different balls, and we randomly put each ball into one of the 3 boxes I, II, and III. Consider the following events. (a) A: Box I is empty; (b) B: Box II is not empty; (c) C: There is...

Determine if the derivative or securitization experiences in different countries is a function of their regulatory regimes

2. What will you do differently the next time you are faced with this situation?

The air handling equipment just described is to be depreciated, using the MACRS with a GDS recovery period of five years. The BV of the equipment at the end of (including) year four is most nearly...

An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000, and it has an estimated MV of $12,000 at the end of an estimated useful life of...

The PW of the after-tax savings from the machine, in labor and materials only, (neglecting the first cost, depreciation, and the salvage value ) is most nearly (using the after tax MARR) (a) $12,000...

I am working from the 4th edition of Corporate Finance Core Principles and Applications by Ross Westerfield Jaffe and Jordan. I have been asked to review and answer the MBA decision in Chapter 4...

21 Consider an investor who, on January 1, 2016, purchases a TIPS bond with an original principal of $108,000, an 10 percent annual (or 5 percent semiannual) coupon rate, and 10 years to maturity. If...

Suppose the yield curve rises for 5 years and then falls. Based on the expectations theory, what does this tell us about future short-term interest rates