One of the first amortizing mortgages was the constant amortization mortgage. Wh

Question

One of the first amortizing mortgages was the constant amortization mortgage.  Which of the following characterized the components of the CAM payment over the life of the loan?

Interest            Amortization    Payment

(A) Decreasing      Decreasing      Decreasing

Interest            Amortization    Payment

(B) Constant          Decreasing      Decreasing

Interest            Amortization    Payment

(C) Decreasing      Constant          Decreasing

Interest            Amortization    Payment

(D) Constant          Constant          Constant

Interest            Amortization    Payment

(A) Decreasing      Decreasing      Decreasing

Interest            Amortization    Payment

(B) Constant          Decreasing      Decreasing

Interest            Amortization    Payment

(C) Decreasing      Constant          Decreasing

Interest            Amortization    Payment

(D) Constant          Constant          Constant

Explanation / Answer

Interest            Amortization    Payment

(D) Constant          Constant          Constant

Interest            Amortization    Payment

(D) Constant          Constant          Constant

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