Ricky Has a Conventional Mortgage

question 49

Multiple Choice

Ricky has a conventional mortgage. He can monitor the reduction of his loan balance through his payments by using _____ information.

• A) amortization
• B) escrow
• C) lock
• D) PMI
• E) points

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Definitions:

Income Taxes

Taxes imposed by government authorities on the income earned by companies and individuals, a significant component of fiscal policy.

Internal Rate

Often referring to the internal rate of return (IRR), which is the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to direct production of goods or services.

Useful Life

The estimated period over which a fixed asset is expected to be useful for the purpose it was acquired.