How Much Interest Is Paid After the First Payment Interval

question 20

Multiple Choice

How much interest is paid after the first payment interval on a $100 000 mortgage? The mortgage is amortized over 25 years and the payments are monthly. The interest rate is 6% compounded semi-annually. Round your answer to the nearest dollar.

• A) $146
• B) $640
• C) $527
• D) $494
• E) $401

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Definitions:

Labeling Perspective

The theory that society's reaction and labels attached to behaviors or individuals can influence the perception of and contribute to deviant behavior.

Society

A group of individuals living together in a more or less ordered community that shares common customs, laws, and social structures.

Deviant Act

Behavior that violates social norms or values, which can range from minor breaches of etiquette to major violations such as criminal activity.

Constructionist Sociologists

Explore how societies come to understand and define criminal behavior and social norms, focusing on the social constructions of reality.