Which of the Following Statements Regarding a 15-Year (180-Month) $125,000

question 35

Multiple Choice

Which of the following statements regarding a 15-year (180-month) $125,000 fixed-rate mortgage is NOT correct? (Ignore all taxes and transaction costs.)

• A)The remaining balance after 3 years will be $125,000 less the total amount of interest paid during the first 36 months.
• B)Because it is a fixed-rate mortgage, the monthly loan payments (which include both interest and principal payments) are constant.
• C)The proportion of the monthly payment that goes toward repayment of principal will be higher 10 years from now than it will be the first year.
• D)The outstanding balance gets paid off at a faster rate in the later years of a loan's life.

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Definitions:

Codes of Behaviour

Established rules or standards governing the actions or conduct of individuals within a group or society.

Internal Social Control

Regulates people through socialization and shapes people’s minds so they come to regard deviant actions as undesirable.

Importance of Learning

The significance attached to acquiring knowledge and skills, emphasizing its role in personal development, career advancement, and societal progress.

Grounding

In a psychological context, it refers to techniques used to bring someone fully into the present and calm the mind, often used in managing anxiety or stress.