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.

Question

Quizplus · Accepted Answer

Using a loan calculator, the total time to pay off the loan with the increased monthly payment of $2,132.85 is approximately 19.25 years.

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