Mortgage Prepayments Are Best Defined by Which One of the Following

question 4

Multiple Choice

Mortgage prepayments are best defined by which one of the following?

• A)reducing the mortgage according to a schedule over the life of the mortgage
• B)paying a monthly mortgage payment before the regular due date
• C)paying off the principal faster than required by the amortization schedule
• D)paying a cash deposit when purchasing a property
• E)paying each mortgage payment as scheduled

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Definitions:

Total Fixed Cost

The overall amount of costs that are unaffected by production volume or output.

Average Total Cost

the total cost of production divided by the number of units produced, representing the cost per unit.

Fixed Cost

Fixed costs are those that stay the same, unaffected by the volume of production or sales, and cover charges like rent, salaries, and insurance fees.

Total Variable Cost

The sum of all costs that vary with the level of output, such as raw materials and labor expenses, for a given period.