Which of the Following Statements Regarding a 30-Year Monthly Payment

question 101

Multiple Choice

Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 10% is CORRECT?

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

---

Definitions:

Inaugural Address

A speech given during the inauguration ceremony of a newly elected or appointed official, outlining their vision and intentions during their term.

Clash of Civilizations

A theory proposed by political scientist Samuel P. Huntington that future conflicts will be between cultures or civilizations, rather than nations.

Cultural Exchanges

The mutual sharing of information, values, traditions, and aspects of culture among individuals and groups from different societies.

Social Media

Platforms that enable users to create and share content or to participate in social networking.