During the Last Years of an Amortizing Mortgage Loan,the Lender

question 17

Multiple Choice

During the last years of an amortizing mortgage loan,the lender applies

• A) most of the monthly payment to the outstanding principal balance.
• B) all of the monthly payment to the outstanding principal balance.
• C) most of the monthly payment to interest on the loan.
• D) all of the monthly payment to interest on the loan.
• E) the monthly payment equally to interest on the loan and the outstanding principal balance.

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Definitions:

Bootstrap Confidence Interval

A type of confidence interval calculated by resampling a dataset with replacement and estimating the desired statistic multiple times.

Bias

In statistics and research, bias refers to a systematic error that leads to incorrect results by favoring certain outcomes over others unintentionally.

Normal

Pertaining to or describing a type of continuous probability distribution for a real-valued random variable that has a symmetrical, bell-shaped curve known as the normal distribution.

Bootstrap Distribution

A resampling method used in statistics to estimate the distribution of a statistic by repeatedly sampling with replacement from the original data.