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A Debt of $100,000 Is Amortized at 6%, Compounded Monthly

Question 29

Multiple Choice

A debt of $100,000 is amortized at 6%, compounded monthly, over 25 years with 300 monthly payments of $644.30 each. The figure below includes two graphs: one shows the total amount paid (in monthly payments) as a function of time (in months) , and the other shows the amount paid toward the principal of the debt as a function of time. ​ A debt of $100,000 is amortized at 6%, compounded monthly, over 25 years with 300 monthly payments of $644.30 each. The figure below includes two graphs: one shows the total amount paid (in monthly payments)  as a function of time (in months) , and the other shows the amount paid toward the principal of the debt as a function of time. ​   ​ Which of the answers represents how much interest will be paid on the debt after 150 months? ​ A)    , where A is the area between the two curves. B) The area between the two curves. C) The length of the vertical line segment from the lower curve to the upper curve at   )  D) The length of the upper graph from the origin to the point with x-coordinate 150. E) The area below the lower curve.
Which of the answers represents how much interest will be paid on the debt after 150 months?


A) A debt of $100,000 is amortized at 6%, compounded monthly, over 25 years with 300 monthly payments of $644.30 each. The figure below includes two graphs: one shows the total amount paid (in monthly payments)  as a function of time (in months) , and the other shows the amount paid toward the principal of the debt as a function of time. ​   ​ Which of the answers represents how much interest will be paid on the debt after 150 months? ​ A)    , where A is the area between the two curves. B) The area between the two curves. C) The length of the vertical line segment from the lower curve to the upper curve at   )  D) The length of the upper graph from the origin to the point with x-coordinate 150. E) The area below the lower curve.
, where A is the area between the two curves.
B) The area between the two curves.
C) The length of the vertical line segment from the lower curve to the upper curve at A debt of $100,000 is amortized at 6%, compounded monthly, over 25 years with 300 monthly payments of $644.30 each. The figure below includes two graphs: one shows the total amount paid (in monthly payments)  as a function of time (in months) , and the other shows the amount paid toward the principal of the debt as a function of time. ​   ​ Which of the answers represents how much interest will be paid on the debt after 150 months? ​ A)    , where A is the area between the two curves. B) The area between the two curves. C) The length of the vertical line segment from the lower curve to the upper curve at   )  D) The length of the upper graph from the origin to the point with x-coordinate 150. E) The area below the lower curve.
)
D) The length of the upper graph from the origin to the point with x-coordinate 150.
E) The area below the lower curve.

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