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.

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Protons

Positively charged subatomic particles found in the nucleus of an atom, determining the element's atomic number.

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Having a pH less than 7, indicating a higher concentration of hydrogen ions in a solution, which gives it acidic properties.

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Chemical reactions in living organisms that are necessary for maintaining life, involving anabolism and catabolism.