loan amount $200,000 * 1 point\nloan term 30 years\ninterest rate 6%\nmonthly payment $1,199.10\nannual…

loan amount $200,000 * 1 point\nloan term 30 years\ninterest rate 6%\nmonthly payment $1,199.10\nannual payment $14,389.20\n54% payment on interest\n46% payment on principal\nwhich statement is true?\nmonthly payments will steadily decrease over the life of the term\nmost of the amount paid on the loan will apply the interest owed\nmost of the amount paid on the loan will apply to the principal owed\nmonthly payments will steadily increase over the life of the term\nwhich of the following costs you more if you take out a loan that you need to pay back? * 1 point\nfixed\nsimple\nvariable\ncompound

loan amount $200,000 * 1 point\nloan term 30 years\ninterest rate 6%\nmonthly payment $1,199.10\nannual payment $14,389.20\n54% payment on interest\n46% payment on principal\nwhich statement is true?\nmonthly payments will steadily decrease over the life of the term\nmost of the amount paid on the loan will apply the interest owed\nmost of the amount paid on the loan will apply to the principal owed\nmonthly payments will steadily increase over the life of the term\nwhich of the following costs you more if you take out a loan that you need to pay back? * 1 point\nfixed\nsimple\nvariable\ncompound

Answer

Brief Explanations:

For the first question, in a fixed - rate loan like this one, the monthly payment amount is fixed over the term. Initially, a larger portion of the payment goes towards interest. Since 54% of the payment is on interest, most of the amount paid on the loan will apply to the interest owed. For the second question, compound interest means that interest is calculated on the principal and also on the accumulated interest of previous periods, so it generally costs more than fixed, simple, or variable interest when paying back a loan.

Answer:

  1. B. most of the amount paid on the loan will apply the interest owed
  2. D. compound