A debt of $100,000 is amortized at 6%, compounded monthly, over 25 years with 300 monthly payments of $644.30 each. The figure below includes two graphs: one shows the total amount paid (in monthly payments) as a function of time (in months), and the other shows the amount paid toward the principal of the debt as a function of time.
Which of the answers represents how much interest will be paid on the debt after 150 months?

A) , where A is the area between the two curves.
B)The area between the two curves.
C)The length of the vertical line segment from the lower curve to the upper curve at )
D)The length of the upper graph from the origin to the point with x-coordinate 150.
E)The area below the lower curve.

Question

A debt of $100,000 is amortized at 6%, compounded monthly, over 25 years with 300 monthly payments of $644.30 each. The figure below includes two graphs: one shows the total amount paid (in monthly payments) as a function of time (in months), and the other shows the amount paid toward the principal of the debt as a function of time. ​  ​
Which of the answers represents how much interest will be paid on the debt after 150 months?
​
A) , where A is the area between the two curves. 
B)The area between the two curves. 
C)The length of the vertical line segment from the lower curve to the upper curve at ) 
D)The length of the upper graph from the origin to the point with x-coordinate 150. 
E)The area below the lower curve.

Quizplus · Accepted Answer

The Answer of A debt of $100,000 is amortized at 6%, compounded monthly, over 25 years with 300 monthly payments of $644.30 each. The figure below includes two graphs: one shows the total amount paid (in monthly payments) as a function of time (in months), and the other shows the amount paid toward the principal of the debt as a function of time. ​  ​
Which of the answers represents how much interest will be paid on the debt after 150 months?
​
A) , where A is the area between the two curves. 
B)The area between the two curves. 
C)The length of the vertical line segment from the lower curve to the upper curve at ) 
D)The length of the upper graph from the origin to the point with x-coordinate 150. 
E)The area below the lower curve.

A Debt of $100,000 Is Amortized at 6%, Compounded Monthly