How Much Principal Is Repaid in the 74th Payment Interval

question 84

Multiple Choice

How much principal is repaid in the 74th payment interval on a $142 300 mortgage? The mortgage is amortized over 25 years and the payments are monthly. The interest rate is 7.44% compounded monthly.

• A) $257.16
• B) $275.16
• C) $527.16
• D) $572.16
• E) $574.16

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Definitions:

Recently Declared

Refers to a statement, dividend, or decision that has been announced or made public by a company or governing body in the near past.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends.

Annual Return

The percentage gain or loss on an investment over a one-year period, reflecting the compound rate of return.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional stock.