Which of the Following Statements Regarding a 15-Year (180-Month)$125,000,fixed-Rate Mortgage

question 133

Multiple Choice

Which of the following statements regarding a 15-year (180-month) $125,000,fixed-rate mortgage is CORRECT? (Ignore taxes and transactions costs. )

• A) The remaining balance after three years will be $125,000 less one third of the interest paid during the first three years.
• B) Because the outstanding balance declines over time,the monthly payments will also decline over time.
• C) Interest payments on the mortgage will increase steadily over time,but the total amount of each payment will remain constant.
• D) The proportion of the monthly payment that goes towards repayment of principal will be lower 10 years from now than it will be the first year.
• E) The outstanding balance declines at a faster rate in the later years of the loan's life.

---

Definitions:

Sense of Individualism

A philosophy or social outlook that emphasizes the moral worth of the individual.

Global Leadership Skills

The ability to exercise effective leadership in a variety of countries.

Societal Hierarchy

A structured ranking within a society where individuals or groups are placed at various levels based on status, power, or authority.

Power Distance

The degree to which less powerful members of an organization or society accept and expect power to be distributed unequally.