Which of the Following Statements Regarding a 30-Year Monthly Payment

question 165

Multiple Choice

Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 8% is CORRECT?

• A) Exactly 8% of the first monthly payment represents interest.
• B) The monthly payments will decline over time.
• C) A smaller proportion of the last monthly payment will be interest, and a larger proportion will be principal, than for the first monthly payment.
• D) The total dollar amount of principal being paid off each month gets smaller as the loan approaches maturity.
• E) The amount representing interest in the first payment would be higher if the nominal interest rate were 6% rather than 8%.

---

Definitions:

Dependent Variable

The variable in experimental research that is measured to assess any changes in response to the manipulation of the independent variable.

Random Assignment

A method used in experiments where participants are allocated to various groups in a way that ensures each has an equal chance of being chosen, to ensure fairness and objectivity in the results.

Experimental Conditions

The controlled environments and variables manipulated by researchers to investigate causal relationships in a study.

Experimental Control

Refers to the practice of eliminating or constant management of variables in an experiment except for the independent variable being studied.