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

---

Definitions:

Venture Deal

An agreement or arrangement often related to funding, merging, or partnering in the context of startup companies or new business ventures.

Business Plan

A document that outlines a company's goals, strategies, market analysis, financial forecasts, and operational structure.

Wicked Problems

Complex issues that are difficult to define and solve because they are intertwined with other problems and have no clear solution.

Stable Problem Statements

Clearly defined issues or challenges that remain consistent over time and do not change significantly.