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    Mortgage payments

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    Your family recently obtained a 30 (360 month) $100,000 fixed rate mortgage. Which of the following
    statements is most correct and why? (ignore taxes and transactions costs).
    A. The remaining balance after three years will be $100,000 les the total amount of interest paid during the first
    36 months.
    B. The proportion of the monthly payment that goes towards repayment of principal will be higher ten years
    from now than it will be this year.
    C. The monthly payment on the mortgage will steadily decline over time.
    D. All of the statements above are correct.
    E. None of the statements above is correct

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    Solution Preview

    The correct statement is B. The proportion of the monthly payment that goes towards ...

    Solution Summary

    The solution explains some questions relating to mortgage payments

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