Both A and B took out 20-year mortgages. A had a payment of $1000. B had a payment of $1200. All else equal, who borrowed more money? Select one: a. A=B b. A c. B
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Both A and B took out 20-year mortgages. A had a payment of $1000. B had a payment of $1200. All else equal, who borrowed more money?
A=B
A
B
The long-term loan that was obtained from the lender is being repaid in monthly mortgage installments. A predetermined interest rate will be paid on top of the borrowed amount when it is repaid. Mortgage payments and loan term are directly correlated.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
