In Mortgage Payments

question 35

Multiple Choice

In mortgage payments:

• A) the roles of both interest and principal are constant throughout because of the 'straight line' method used.
• B) the interest and principal always move in opposite trends.
• C) as the principal declines, the interest component plays a diminishing role.
• D) as the principal declines, the interest component plays an increasing role.

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Definitions:

Unit Variable Costs

The costs that vary directly with the level of production or output.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Break-even Analysis

A calculation to determine the point at which revenue received equals the costs associated with receiving the revenue, indicating no net loss or gain.

Total Revenue

The total amount of income generated by the sale of goods or services related to the company's primary operations.