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:

Acute Effect

Immediate or short-term physiological or health outcome resulting from exposure to a hazardous substance or environmental factor.

Kidney Damage

Harm caused to the kidneys, vital organs responsible for filtering waste products from the blood, which can lead to reduced function or kidney failure.

Toxic Chemical

A substance that can cause harm to organisms through chemical reactions or other actions on the molecular scale, often dangerous to human health and the environment.

Exposure Levels

The degrees or amount of exposure to a particular substance, condition, or agent that an organism or ecological system experiences.