49
QuizMultiple Choice

Topic Test

Question 49 • ****Spring 2026 Financial Math - MA2007 MQS21QXV

Which of the following statements is true.I. The higher your interest rate, the higher your monthly mortgage payments.II. The higher your down payment, the higher your monthly mortgage payments.III. A 30 year mortgage fixed at 6% will have smaller payments that a 20 year mortgage fixed at 6%.

Answer
A
I only
B
II only
C
I, II, and III
D
I and III

Explanation

A higher interest rate increases the cost of borrowing, so statement I is true. A larger down payment means you borrow less, which generally lowers—not raises—your monthly payment, so statement II is false. At the same 6% rate and for the same loan amount, a 30-year mortgage spreads repayment over more months than a 20-year mortgage, making its monthly payments smaller. Therefore, the true statements are I and III: choice D.

AI-written and checked against the verified answer.

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