36
practice examMultiple Choice

Practice Exam

Question 36 • Financial Math

Which component is a primary part of a mortgage?

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

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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