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

question 10

Multiple Choice

Which of the following statements regarding a 15-year (180-month) $125,000 fixed-rate mortgage is NOT correct? (Ignore all taxes and transactions costs.)

• A) The remaining balance after 3 years will be $125,000 less the total amount of interest paid during the first 36 months.
• B) Because it is a fixed-rate mortgage, the monthly loan payments (which include both interest and principal payments) are constant.
• C) The proportion of the monthly payment that goes toward repayment of principal will be higher 10 years from now than it will be the first year.
• D) The outstanding balance gets paid off at a faster rate in the later years of a loan's life.

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Definitions:

Repressed Memories

Memories that have been unconsciously blocked due to the memory being associated with a high level of stress or trauma.

Reaction Formation

A defense mechanism where an individual behaves in a way opposite to their real feelings, often unconsciously.

Unconscious Awareness

A state in which an individual is not fully aware of underlying thoughts, feelings, or desires that influence behavior, rooted in psychoanalytic theory.

Moral Anxiety

A feeling of discomfort or worry caused by conflict between one's actions and moral standards.