A Debt of $100,000 Is Amortized at 6%, Compounded Monthly

question 29

Multiple Choice

A debt of $100,000 is amortized at 6%, compounded monthly, over 25 years with 300 monthly payments of $644.30 each. The figure below includes two graphs: one shows the total amount paid (in monthly payments) as a function of time (in months) , and the other shows the amount paid toward the principal of the debt as a function of time. ​ ​
Which of the answers represents how much interest will be paid on the debt after 150 months?
​

• A) , where A is the area between the two curves.
• B)The area between the two curves.
• C)The length of the vertical line segment from the lower curve to the upper curve at )
• D)The length of the upper graph from the origin to the point with x-coordinate 150.
• E)The area below the lower curve.

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Definitions:

Geometry

The branch of mathematics concerning the properties and relations of points, lines, surfaces, solids, and higher dimensional analogs.

Alkene

Unsaturated hydrocarbons with at least one double bond between carbon atoms, exhibiting properties like addition reactions.

(Z)-2-Chloro-4-Ethylhex-2-Ene

A geometric isomer of an organic compound characterized by a specific arrangement of atoms, including a chloride and ethyl group.

(Z)-1-Chloro-1-Fluoro-1-Butene

A geometric isomer of a chlorofluorinated butene, characterized by having the chlorine and fluorine on the same side of the double bond.