Which of the following statements is not true about mortgages? The ending balance of an amortized loan contract will be zero. Mortgages are examples of amortized loans. Mortgages always have a fixed nominal interest rate. The payment allocated toward principal in an amortized loan is the residual balance-that is, the difference between total payment and the interest due.
Which of the following statements is not true about mortgages? The ending balance of an amortized loan contract will be zero. Mortgages are examples of amortized loans. Mortgages always have a fixed nominal interest rate. The payment allocated toward principal in an amortized loan is the residual balance-that is, the difference between total payment and the interest due.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:**Question:** Which of the following statements is not true about mortgages?
- The ending balance of an amortized loan contract will be zero.
- Mortgages are examples of amortized loans.
- Mortgages always have a fixed nominal interest rate.
- The payment allocated toward principal in an amortized loan is the residual balance—that is, the difference between total payment and the interest due.
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