Which of the Following Statements Regarding a 15-Year (180-Month)$125,000,fixed-Rate Mortgage

question 121

Multiple Choice

Which of the following statements regarding a 15-year (180-month) $125,000,fixed-rate mortgage is CORRECT? (Ignore taxes and transactions costs. )

• A) The remaining balance after three years will be $125,000 less one third of the interest paid during the first three years.
• B) Because it is a fixed-rate mortgage,the monthly loan payments (which include both interest and principal payments)are constant.
• C) Interest payments on the mortgage will increase steadily over time,but the total amount of each payment will remain constant.
• D) 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.
• E) The outstanding balance declines at a slower rate in the later years of the loan's life.

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Definitions:

Self-fulfilling Prophecy

A prediction that causes itself to become true due to the behavior it generates in believers.

Discriminatory Manner

Acting in a way that makes an unfair distinction in treating people, especially on the grounds of race, age, or sex.

Prejudicial Remarks

Statements or comments that are unfair or biased, often based on stereotypes, leading to the discrimination of individuals or groups.

Discrimination

The unfair or biased treatment of various groups of individuals, frequently rooted in differences such as racial background, age, gender, or physical abilities.