in a fully amortized mortgage, during the last years of the loan, the lender applies   A. most of the monthly payment to interest on the loan.   B. the monthly payment equally to interest on the loan and the outstanding principal balance.   C. all of the monthly payment to the outstanding principal balance.   D. all of the monthly payment to interest on the loan.   E. most of the monthly payment to the outstanding principal balance.

An amortized loan:     repays both the principal and the interest in one lump sum at the end of the loan term.   requires the principal amount to be repaid in even increments over the life of the loan.   requires that all payments be equal in amount and include both principal and interest.   requires that all interest be repaid on a monthly basis while the principal is repaid at the end of the loan term.   may have equal or increasing amounts applied to the principal from each loan payment.

Using this table as needed, calculate the required information for the mortgage. Number Table Monthly Payment (in $) Term Total Amount Interest of Loan of $1,000s Financed Factor Interest Financed Rate (years) (in $) (in $) $78,500 8.00% 30

Based upon the simple interest rate method of a fixed interest rate installment loan or mortgage, successive monthly loan payments over time   a. pay the same percentage to interest and principal.   b. pay increasing percentages to interest and decreasing percentages to principal.   c. pay increasing percentages to principal and decreasing percentages to interest.   d. pay decreasing percentages to interest and principal.