Rank the Following Types of Mortgages by Amount Outstanding from Largest

question 59

Multiple Choice

Rank the following types of mortgages by amount outstanding from largest to smallest.
I. Home mortgages
II. Multifamily mortgages
III. Farm mortgages
IV. Commercial mortgages

• A)I,II,III,IV
• B)I,II,IV,III
• C)II,I,IV,III
• D)IV,II,III,I
• E)I,IV,II,III

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Definitions:

Compounded Monthly

A method of calculating interest where the accumulated interest is added to the principal sum each month, leading to an increase in the amount of subsequent interest accrued.

Financing

The process of providing funds for business activities, making purchases, or investing.

Nominal Rate

The stated or named interest rate on a loan or investment, not accounting for compounding or inflation.

Quarterly Deposits

funds that are added to an account or investment four times a year.