Assume Your Current Mortgage Payment Is $900 Per Month

question 67

Multiple Choice

Assume your current mortgage payment is $900 per month. If you begin to pay $1,000 per month (with the extra $100 per month going to principal) , which of the following will be TRUE?

• A) The mortgage balance will decrease faster with $1,000 monthly payment compared to $900 monthly payments.
• B) The total amount paid (principal and interest) will increase with $1,000 monthly payment compared to $900 monthly payments.
• C) The total interest expense will increase with $1,000 monthly payment compared to $900 monthly payments.
• D) The total principal paid will decrease with $1,000 monthly payment compared to $900 monthly payments.

---

Definitions:

Toxins

Poisonous substances produced by living organisms, often used as defense mechanisms against predators or to incapacitate prey.

Fossilization

The process by which organic materials are preserved in the Earth's crust over geological time, becoming fossils.

Minerals

Naturally occurring inorganic substances with a definite chemical composition and crystalline structure, vital for various biological and industrial processes.

Sediment

Particulate material that is transported and deposited by wind, water, or ice, often forming layers on the Earth's surface.