Excel File Edit View Insert Format Tools Data Window $ A Home Layout ablesCharts

Question

Excel File Edit View Insert Format Tools Data Window $ A Home Layout ablesCharts SmartArtFormulas Data Revie Alignmen Font abe Wrap Calibri (Body)1.111 11A-1A- Fill Clear BLU Paste 172 74 (D) Nominal demand 75 76 10) One of the most popular amortizing mortgages today is the constant payment mortgage. 77 Which of the following characterizes the components of the CPM payment over the life of the loan? Payment Decreasing Decreasing Increasing Constant 78 79 (A) 80 IntereAmortization Decreasing Decreasing Constant Constant Constant (C) Decreasing 81 82 83 84 85 (D) Constant 86 87 89 90 91 92 93 94 95 97 98 100 101 102 103 104 105 106 107 108 109

Explanation / Answer

Constant Payment Mortgage :

CPM is the method of repaying the mortgage loan amount. It involves the equal ( constant) payments by the borrower which includes both interests, amortization of the loan. If all payment is made interest along with the total loan will be amortized. CPM model has the following components.

Answer: C) Interest ( Decreasing), Amortization ( Increasing), Payment ( Constant ).

Note: Since the options in the spreadsheets are not appropriately arranged ( Interest is not Properly fit into the collum). please take the answer according to the correct arrangement of the answer.

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