Question 8 • [PERFIN] Personal Finance, Sem 2 (26-27)
The monthly payment on a $150,000, 30-year mortgage at 11% is about $1,428.50; at 5% (6 percentage points lower), it is about $805.25. The difference is about $623.25 per month, or $623.25 × 120 = $74,790.37 saved over the first 10 years. Invested for the remaining 20 years at 2.5% simple interest, it earns $74,790.37 × 0.025 × 20 = $37,395.18 in interest, choice A.
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