An Escrow Account Is Used to Collect ____ from One's

question 161

Multiple Choice

An escrow account is used to collect ____ from one's monthly mortgage payment.

• A)interest
• B)principal
• C)real estate taxes
• D)homeowner's insurance
• E)c and d only

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Definitions:

Semiannual Interest

Interest that is calculated and paid twice a year.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the bond's face value.

Interest Rates

The proportion of an amount of money levied for its utilization, denoting the expense of borrowing funds or the profit on investments.

Market Value

The prevailing cost at which an asset or service can be traded or acquired.