32).

a.b.

Determine whether the statement below makes sense or does not make sense and explain your reasoning. There must be an error in the loan amortization schedule for my mortgage because the annual interest rate is only 3.3%, yet the schedule shows that I'm paying more on interest than on the principal for many of my payments. Choose the correct answer below. O A. The statement makes sense because the monthly payments are applied to the principal first and then to the interest. Therefore, the principal payments should always be higher than the interest payments. B. The statement makes sense because using the simple interest formula with the given interest rate, the interest payment should not be very high. Therefore, more should be paid to the principal for each monthly payment. O C. The statement does not make sense because the amount paid to the principal never changes. The interest decreases as the balance decreases should, therefore, be lower than the principal payment. OD. The statement does not make sense because the monthly payments are applied to the interest first and then to the principal. The interest will decrease as the balance decreases, but for many payments, the interest payments will be higher. Describe how to determine what you can afford for your monthly payment. Choose the correct answer below. A. Spend no more than 14% of your gross monthly income for your mortgage payment, and spend no more than 28% of your gross monthly income for your total monthly debt. B. Spend no more than 28% of your gross monthly income for your mortgage payment, and spend no more than 36% of your gross monthly income for your total monthly debt. C. The amount of the mortgage should be no more than 25% of the total monthly debt, not including the amount of the mortgage. D. The amount of the mortgage should be no more than 50% of the total monthly debt, not including the amount of the mortgage