An Equal-Payment Mortgage Is Calculated Using the Interest on the Remaining

Multiple Choice

An equal-payment mortgage is calculated using the interest on the remaining balance of the capital every month, whereas interest paid on a line of credit is deducted from your account every month.So, mortgage payments are calculated using ______ where line of credit interest is calculated using ______.

A) simple interest, compound interest
B) compound interest, simple interest
C) simple interest, simple interest
D) compound interest, compound interest