For Any Given Interest Rate, the Shorter the Life of the Mortgage

question 22

Multiple Choice

For any given interest rate, the shorter the life of the mortgage, the ____ the monthly payment and the ____ the total payments over the life of the mortgage.

• A)greater; greater
• B)greater; lower
• C)lower; greater
• D)lower; lower

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Definitions:

VARs

Volt-Ampere Reactive, a unit of reactive power in an AC electrical power system.

Three-Phase Connection

A method of electrical connection that uses three alternating currents of the same frequency and amplitude but with phases offset by one third of a cycle.

Windings

Coils of wire around a core in electrical devices, used to create magnetic fields or induce currents.

Wye

A configuration for connecting three-phase power where the phases are connected at a common point, forming a Y shape.