What Are the Two Main Factors That Contribute to How

question 43

Multiple Choice

What are the two main factors that contribute to how much interest is paid on a mortgage loan?

• A) Repayment period and cost of insurance.
• B) Repayment period and interest rate.
• C) Repayment period and closing costs.
• D) Interest rate and closing costs.

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Definitions:

Common Stock

Common Stock represents equity ownership in a corporation, granting holders voting rights and a share in the company's profits through dividends.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, indicated on the balance sheet.

Net Income

The conclusive profit of a corporation post-deduction of all operational costs and taxation from the aggregate revenue.

Cash Dividends

Payments made by a corporation out of its earnings to its shareholders, usually in the form of cash.