4
practice testMultiple Choice

Practice Test

Question 4 • Financial Algebra/Mathematics

Which component is a primary part of a mortgage?

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

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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