Which of the Following Statements Regarding a 15-Year (180-Month) $225,000

question 125

Multiple Choice

Which of the following statements regarding a 15-year (180-month) $225,000, fixed-rate mortgage is CORRECT? (Ignore taxes and transactions costs.)

• A) The outstanding balance declines at a faster rate in the later years of the loan's life.
• B) The remaining balance after three years will be $125,000 less one third of the interest paid during the first three years.
• C) Because the outstanding balance declines over time, the monthly payments will also decline over time.
• D) Interest payments on the mortgage will increase steadily over time, but the total amount of each payment will remain constant.
• E) The proportion of the monthly payment that goes towards repayment of principal will be lower 10 years from now than it will be the first year.

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Definitions:

Polysemy

The capacity for a word or phrase to have multiple related meanings.

Media Content

The text, images, sound, or video that are produced and disseminated through various communication platforms, including television, radio, the internet, and print media.

Multiple Meanings

The phenomenon where a single word or phrase can have varied interpretations or significances in different contexts or usages.

Racialized Spaces

Physical or social environments that are defined, divided, or categorized based on race, often reflecting broader patterns of segregation, exclusion, or inequality.