4
practice examMultiple Choice

Practice Exam

Question 4 • Advanced Financial Algebra

Which component is a primary part of a mortgage?

Answer
A
principal amount
B
electricity bill
C
car insurance premium
D
monthly grocery expenses

Explanation

A mortgage is a loan used to buy property, and its principal amount is the money borrowed that must be repaid. An electricity bill, car insurance premium, and grocery expenses are household costs, not parts of the mortgage itself.

AI-written and checked against the verified answer.

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