Which of the Following Statements Best Describes the Behavior Over

question 36

Multiple Choice

Which of the following statements best describes the behavior over time of the components of equal mortgage payments?

• A)The proportion of interest expense to payment of principal remains the same.
• B)Payment of principal increases and interest expense decreases.
• C)Both payment of principal and interest expense decrease.
• D)Interest expense increases and payment of principal decreases.

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Definitions:

Shift of Assets

Shift of assets involves reallocating or transferring assets from one investment to another or from one asset class to another.

Accounts Receivable

Money owed to a business by its customers for goods or services sold on credit.

Fees Earned

Income or revenue generated by providing services, distinct from selling goods.

Supplies

Items used in the operation of a business but not directly related to the production of goods or services, such as office supplies.