Payment amortized mortgage with nominal interest rate

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Reference no: EM132044504

1. Which statement is correct concerning a 30-year monthly payment amortized mortgage with a nominal interest rate of 9%?

a) The first monthly payment will be largely interest versus principal compared to the final payment.

b) The first monthly payment will be largely principle versus interest compared to the final payment.

c) The proportion of interest being paid off on a monthly basis increases over the loan life.

d) The interest proportion of each monthly payment is 9%.

2. Timelines can be used when some cash flows occur annually and others quarterly.

a) True

b) False

Reference no: EM132044504

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