Which of the Following Statements Regarding a 20-Year Monthly Payment

question 118

Multiple Choice

Which of the following statements regarding a 20-year monthly payment amortized mortgage with a nominal interest rate of 10% is CORRECT?

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

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Definitions:

Modeling

The process of learning behaviors, attitudes, and values by observing and imitating others, particularly influential figures.

Emotional Learning

The process through which individuals acquire and understand emotions, including how to respond to and regulate emotional experiences.

Nonverbal Expression

Nonverbal expression involves the communication of thoughts or feelings without the use of spoken words, through gestures, facial expressions, body language, and other cues.

Emotional Communication

The process of conveying feelings, intentions, and attitudes through verbal and non-verbal messages, body language, and facial expressions.