An Equal-Payment Mortgage Is Calculated Using the Interest on the Remaining

question 41

Multiple Choice

An equal-payment mortgage is calculated using the interest on the remaining balance of the capital every month, whereas interest paid on a line of credit is deducted from your account every month.So, mortgage payments are calculated using ______ where line of credit interest is calculated using ______.

• A)simple interest, compound interest
• B)compound interest, simple interest
• C)simple interest, simple interest
• D)compound interest, compound interest

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