If a person is going to borrow $360,000 for a home and pay it off with a constant mortgage payment every month for 30 years, what do you know about their mortgage payment (if the interest rate is positive)?
A)Nothing.
B)The payment is more than $1,000 per month.
C)The payment is exactly than $1,000 per month.
D)The payment is less than $1,000 per month.

Question

Quizplus · Accepted Answer

With a 30-year mortgage, the payment would be more than $1,000 per month, assuming a positive interest rate. It is impossible to know the exact payment amount without knowing the interest rate, but based on the loan amount and repayment period, it will be higher than $1,000 per month.

If a Person Is Going to Borrow $360,000 for a Home