Negative Amortization Results When

question 110

Multiple Choice

Negative amortization results when

• A)the monthly interest payment on the home mortgage declines.
• B)the remaining loan balance declines.
• C)the monthly mortgage payment is less than the monthly interest on the remaining loan balance.
• D)the monthly mortgage payment is just equal to the monthly interest on the remaining loan balance.

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Definitions:

DOHC

Stands for Dual Overhead Camshaft, a design in internal combustion engines where two camshafts are used to control the valves for improved performance.

Internal Combustion Engines

Engines that generate mechanical power by burning a fuel-air mixture within combustion chambers to create high-pressure gases that drive movement.

Intake

The part of an engine that draws air into the combustion chamber, sometimes referring more broadly to the system including air filters and intake manifolds.

Compression

The process of reducing the volume of a mixture of air and fuel in an engine's cylinder before ignition, thereby increasing its potential power.