cammy takes out a fully-amortized, fixed-rate loan for her new vacation home on lake placid. when cammy's mother asks her to fly to singapore for their family vacation, cammy tells her mother she doesn't know if she can afford it, as her loan payments could fluctuate. analyze if cammy is correct. Cammy IS correct; her loan payments could change at any time.
Cammy is NOT correct; her loan payments may fluctuate, but they will not exceed a specified amount.
Cammy IS correct; her loan payments will increase every month.
Cammy is NOT correct; she has a fully-amortized, fixed-rate loan, so she knows exactly how much her monthly payments will be.