A Borrower Must Pay Which One of the Following in Order

question 80

Multiple Choice

A borrower must pay which one of the following in order to pay off their home mortgage?

• A)remaining principal balance plus any accrued interest
• B)present value of all future payments discounted at the current market rate
• C)all remaining payments in full
• D)remaining principal balance plus one year's interest
• E)present value of the remaining principal balance

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Definitions:

National Income

The total income earned by a nation's people and businesses, including salaries, profits, and investment income, within a specific period.

Net National Product

The total value of all goods and services produced by a country's residents in a year, minus depreciation.

Depreciation

A decrease in the value of a currency as measured by the amount of foreign currency it can buy.

Intermediate Goods

Goods or services used in the production process of final goods and services but are not themselves final products.