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You Are Considering Two Payment Options on a $700,000 25-Year

Question 81

Multiple Choice

You are considering two payment options on a $700,000 25-year mortgage having an interest rate of 4% compounded monthly. The first option is to make monthly payments at the start of each
Month, while the second option is to make payments at the end of each month. How much interest
Will be saved by choosing the first option?


A) $3,683
B) $3,999
C) $2,946
D) $3,695
E) $3,734

Correct Answer:

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