Suppose You Have Taken Out a $325,000 Fully-Amortizing Fixed Rate

question 28

Multiple Choice

Suppose you have taken out a $325,000 fully-amortizing fixed rate mortgage loan that has a term of 30 years and an interest rate of 5.5%. In month 10 of the mortgage, how much of the monthly mortgage payment does the interest portion consist of?

• A) $370.68
• B) $1,474.64
• C) $1,489.58
• D) $1,845.31

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