Which of the following statements regarding a 20-year monthly payment amortized mortgage with a nominal interest rate of 10% is CORRECT?
A. Exactly 10% of the first monthly payment represents interest.
B. The monthly payments will increase over time.
C. A larger proportion of the first monthly payment will be interest, and a smaller proportion will be principal, than for the last monthly payment.
D. The total dollar amount of interest being paid off each month gets larger as the loan approaches maturity.
E. The amount representing interest in the first payment would be higher if the nominal interest rate were 7% rather than 10%.
Answer: C
You might also like to view...
Data collection, text coding and categorization, and text-mining and visualization are unique aspects of data preparation in social media
Indicate whether the statement is true or false
Which of the following has the largest total GDP?
A) China B) Japan C) the United States D) Chile E) the European Union
Which of the following is/are times that emotional self-leadership strategies can be applied?
a. Before the emotion arises b. After the emotion has been triggered c. After the emotion has passed d. Before the emotion arises and after the emotion passes
Write two questions that a firm would be likely to consider during the marketing planning stage
What will be an ideal response?