Suppose You Have Taken Out a $400,000 Fully-Amortizing Fixed Rate

question 19

Multiple Choice

Suppose you have taken out a $400,000 fully-amortizing fixed rate mortgage loan that has a term of 15 years and an interest rate of 3.75%. In month 1 of the mortgage, how much of the monthly mortgage payment does the interest portion consist of?

• A) $9.09
• B) $1,250.00
• C) $1658.89
• D) $2,908.89

---

Definitions:

Dorsal Root Ganglion

A cluster of sensory neurons located in the dorsal root of a spinal nerve, transmitting sensory information to the spinal cord.

Ventral Root

A bundle of motor neuron fibers emerging from the anterior aspect of the spinal cord and conveying impulses from the central nervous system to the muscles.

Spinal Nerve

One of the 31 pairs of nerves that originate from the spinal cord, providing motor and sensory functions to the body.

Dorsal Root

The sensory branch of a spinal nerve that enters the spinal cord, carrying sensory information from the peripheral nervous system to the central nervous system.