You Have a 30-Year Mortgage with a Simple Annual Interest

question 87

Multiple Choice

You have a 30-year mortgage with a simple annual interest rate of 8.5 percent.The monthly payment is $1,000.What percentage of your total payments over the first three years goes toward the repayment of principal?

• A) 1.50%
• B) 3.42%
• C) 5.23%
• D) 6.75%
• E) 8.94%

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Definitions:

Diagnosed

The process of identifying a disease or condition from its signs and symptoms through examination, testing, and analysis.

Prosopagnosia

A brain disorder that results in a person's inability to identify faces, often referred to as face blindness.

License Plates

Metal or plastic plates attached to motor vehicles for official identification purposes, displaying a unique sequence of letters and numbers.

Broca's Area

An area of the frontal lobe in the left hemisphere of the brain, associated with the production of language.