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

question 121

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 it is a fixed-rate mortgage,the monthly loan payments (which include both interest and principal payments)are constant.
• 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 slower rate in the later years of the loan's life.

---

Definitions:

Epicondylitis

An inflammation of the tendons that attach to the elbow, commonly known as tennis elbow or golfer's elbow, causing pain and tenderness.

Pain

A disagreeable feeling and emotional response that comes with either real or possible harm to the body.

Types Of Kyphosis

Different forms of abnormal outward curvature of the spine, leading to a hunched back appearance, which can be classified based on their cause, such as postural, congenital, or disease-related.

Spinal

Pertaining to the spinal column, canal, or cord.