One of the First Amortizing Mortgages Was the Constant Amortization

question 24

Multiple Choice

One of the first amortizing mortgages was the constant amortization mortgage. Which of the following characterized the components of the CAM payment over the life of the loan? Interest Amortization Payment

• A) Decreasing Decreasing Decreasing
• B) Constant Decreasing Decreasing
• C) Decreasing Constant Decreasing
• D) Constant Constant Constant

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Definitions:

HD

Typically refers to "High Definition," denoting a high level of detail in images or videos, but in a financial context, it could relate to "Home Depot" stock symbol or a concept not standardized across finance.

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding the costs associated with producing goods or services.

Days Sales Outstanding

A measure of the average number of days that it takes a company to collect payment after a sale has been made, indicating the effectiveness of a company's credit and collection policies.

Receivables

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.