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 100 months?

A) 1 - 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 x = 100.
D) The length of the upper graph from the origin to the point with x-coordinate 100.
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 100 months?
​
A) 1 - 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 x = 100. 
D) The length of the upper graph from the origin to the point with x-coordinate 100. 
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 100 months?
​
A) 1 - 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 x = 100. 
D) The length of the upper graph from the origin to the point with x-coordinate 100. 
E) The area below the lower curve.

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