Suppose You Have Taken Out a $125,000 Fully-Amortizing Fixed Rate

question 3

Multiple Choice

Suppose you have taken out a $125,000 fully-amortizing fixed rate mortgage loan that has a term of 15 years and an interest rate of 6%. After your first mortgage payment, how much of the original loan balance is remaining?

• A) $1,054.82
• B) $120,603.78
• C) $124,570.18
• D) $124,875.56

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Definitions:

Claim Letter

A formal letter written to demand a correction or a payment due to unsatisfactory products or services received.

Persuasive Technique

A method or approach used to convince or influence someone to agree with a viewpoint, make a decision, or take action by appealing to logic, emotions, or ethics.

On-site

Located or taking place at a particular site or location, often in relation to work or an event.

Employee Exercise Room

A designated area within a workplace equipped with fitness facilities for employees' use, aiming to promote health and well-being.