Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Apr 2512:30 AM EDT
-01:30 AM EDT
At one point, she believed GMAT wasn’t for her. After scoring 595, self-doubt crept in and she questioned her potential. But instead of quitting, she made the right strategic changes. The result? A remarkable comeback to 695. Check out how Saakshi did it.
Apr 2610:00 AM EDT
-11:00 AM EDT
The Target Test Prep course represents a quantum leap forward in GMAT preparation, a radical reinterpretation of the way that students should study. Try before you buy with a 5-day, full-access trial of the course for FREE!
Apr 2711:00 AM EDT
-12:00 PM EDT
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors
Apr 2808:00 AM PDT
-11:00 AM PDT
Whether you are just beginning your MBA journey or fine-tuning your path to a 700+ score, GMAT Day is designed to give you a competitive edge.
08 May 2017, 06:25
Kudos
Bookmarks
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
85%
(hard)
Question Stats:
47% (01:59) correct
53%
(02:00)
wrong
based on 644
sessions
History
Date
Time
Result
Not Attempted Yet
The newest trend in home buying is interest-only mortgages. These mortgages require a borrower to pay only the interest on the loan. This means that the principle (which is the amount borrowed) never gets any smaller. Buyers never accumulate any equity in their homes and often have to default. Therefore, these loans are bad for Americans and should be made illegal.
The argument in the above passage depends on which of the following assumptions?
(A) Homeowners can’t afford to pay more than the interest on the loan.
(B) Some things that are bad for Americans should be made illegal.
(C) Interest-only mortgages don’t require the buyer to pay more than the interest.
(D) Buyers with no equity in their homes often have to default on their loans.
(E) Owners won’t accumulate equity based on the increasing value of their house.
The argument in the above passage depends on which of the following assumptions?
(A) Homeowners can’t afford to pay more than the interest on the loan.
(B) Some things that are bad for Americans should be made illegal.
(C) Interest-only mortgages don’t require the buyer to pay more than the interest.
(D) Buyers with no equity in their homes often have to default on their loans.
(E) Owners won’t accumulate equity based on the increasing value of their house.
09 May 2017, 23:02
Kudos
Bookmarks
Hi everyone,
Here is the official explanation for this question.
This critical-reasoning question requires you to identify the assumption.
You’re looking for a statement that connects the premises to the conclusion. An assumptionisn’t directly stated in the premises. (You have to accept that the stated premises are true,even if the text doesn’t provide evidence for them.)
Eliminate B because it just restates part of the conclusion. Choice C can’t be an assumption because it restates information from one of the premises. Choice D also essentially restates one of the premises. Choice A is a pretty solid choice; it seems reasonable that most people who take out interest-only mortgages do so because they can’t afford to pay more than the interest. But the conclusion doesn’t depend on this assumption. It does depend on the assumption in E that buyers who aren’t paying down the principle on their loan won’t accumulate value as their home value increases.
Hope this helps. All the best.
Here is the official explanation for this question.
This critical-reasoning question requires you to identify the assumption.
You’re looking for a statement that connects the premises to the conclusion. An assumptionisn’t directly stated in the premises. (You have to accept that the stated premises are true,even if the text doesn’t provide evidence for them.)
Eliminate B because it just restates part of the conclusion. Choice C can’t be an assumption because it restates information from one of the premises. Choice D also essentially restates one of the premises. Choice A is a pretty solid choice; it seems reasonable that most people who take out interest-only mortgages do so because they can’t afford to pay more than the interest. But the conclusion doesn’t depend on this assumption. It does depend on the assumption in E that buyers who aren’t paying down the principle on their loan won’t accumulate value as their home value increases.
Hope this helps. All the best.
General Discussion
08 May 2017, 10:22
Kudos
Bookmarks
can someone please explain. Why E is the correct answer?
