The more money that a certain investor puts in his money market account, the more interest he will receive at the end of the month. The investor allocates all of his interest at the end of the month to pay the principal on his mortgage. Hence, the investor's mortgage principal would decline if he were to sell his luxury boat and put all the proceeds in his money market account.

If the statements above are true, which of the following must be true?

Answer Choices

Correct answer marked below

If the investor were to sell his luxury boat and put the proceeds into his money market account, it would yield more interest than if he had not done so.

Correct

The value of the investor's boat decreased substantially since he bought it.

If the investor sells his luxury boat and puts all the proceeds in his money market account, then his bank will have the funds to approve more of its customers' loan requests.

If the investor sells his car, his mortgage principal would decline.

If the investor sells his boat and puts all the proceeds in his money market account, then he will be able to pay the entire principal on his mortgage.

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What this question tests

What it tests

Whether you can draw a conclusion that must follow from the stated facts.

Common trap

Choosing an option that could be true or is likely true — inference answers must be guaranteed by the passage.