How Much Principal Is Repaid in the 74th Payment Interval

question 84

Multiple Choice

How much principal is repaid in the 74th payment interval on a $142 300 mortgage? The mortgage is amortized over 25 years and the payments are monthly. The interest rate is 7.44% compounded monthly.

• A) $257.16
• B) $275.16
• C) $527.16
• D) $572.16
• E) $574.16

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Definitions:

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs such as rent, utilities, and maintenance.

Underapplied Overhead

This occurs when the allocated manufacturing overhead costs are less than the actual overhead costs incurred, indicating that the overhead was not fully assigned to products or jobs.

Adjusted Cost of Goods Sold

The cost of goods sold figure after adjustments for factors like overhead, discounts, returns, and allowances have been taken into account.

Manufacturing Overhead

All indirect costs associated with the production process, including costs related to factory equipment maintenance, utilities, and quality control.