Which of the Following Statements Regarding a 30-Year Monthly Payment

question 78

Multiple Choice

Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 10% is CORRECT?

• A) The monthly payments will increase over time.
• B) A larger proportion of the first monthly payment will be interest,and a smaller proportion will be principal,than for the last monthly payment.
• C) The total dollar amount of interest being paid off each month gets larger as the loan approaches maturity.
• D) The amount representing interest in the first payment would be higher if the nominal interest rate were 7% rather than 10%.
• E) Exactly 10% of the first monthly payment represents interest.

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Definitions:

Maintain Homeostasis

The process by which living organisms regulate their internal environment to stabilize health and functioning, despite external changes.

Instinct

A complex behavior that is rigidly patterned throughout a species and is unlearned.

Inner Bodily States

The physical sensations and feelings that originate within the body, such as hunger, thirst, fatigue, or pain.

External Incentives

Motivational factors outside an individual that stimulate a desire or energy to undertake a specific action or achieve a goal.