which of the following statements regarding a 30 year monthly payement amortized

Question

which of the following statements regarding a 30 year monthly payement amortized mortgage with a nominal interest rate of 10% is correct?

A the monthly payment will decline overtime
B a smaller proportion of the last monthly payment will be interest and a larger proporiton will be pricipal thanf rothe first monthly payment
C the total dollare amt of pricipal being paid offeach month gets smaller as loan approaches
D amt representing interest in first payment would be higher if nominal interest rate were 7% rather than 10
E exactly 10% of the first monthly payment represents interest

Explanation / Answer

B.) You pay mostly interest in the first few payments as the principal is reduced mostly in the later payments.

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