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Which of the following statements regarding a 1 5 - year ( 1 8 0 - month ) $ 1 2 5 , 0 0
Which of the following statements regarding a year month $ fixedrate mortgage is CORRECT? Ignore taxes and transactions costs. a The proportion of the monthly payment that goes towards repayment of principal will be lower years from now than it will be the first year. b Interest payments on the mortgage will decrease steadily over time, but the total amount of each payment will remain constant. c The remaining balance after three years will be $ less one third of the interest paid during the first three years. d The outstanding balance declines at a slower rate in the later years of the loan's life. e Because it is a fixedrate mortgage, the monthly loan payments are not constant.
Which of the following statements regarding a year month $ fixedrate mortgage is CORRECT? Ignore taxes and transactions costs.
a The proportion of the monthly payment that goes towards repayment of principal will be lower years from now than it will be the first year.
b Interest payments on the mortgage will decrease steadily over time, but the total amount of each payment will remain constant.
c The remaining balance after three years will be $ less one third of the interest paid during the first three years.
d The outstanding balance declines at a slower rate in the later years of the loan's life.
e Because it is a fixedrate mortgage, the monthly loan payments are not constant.
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