A Simple Loan Involves

question 31

Multiple Choice

A simple loan involves

• A)interest payments from the borrower to the lender periodically during the life of the loan.
• B)no payment of interest by the borrower to the lender.
• C)payment of interest by the borrower to the lender only at the time the loan matures.
• D)no repayment of principal by the borrower to the lender.

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Definitions:

Distribution

Describes the frequency or probability of all possible outcomes of a random variable.

Box Plots

Box plots, also known as box-and-whisker plots, are graphical representations used in descriptive statistics that show the distribution, central value, and variability of a dataset through quartiles, highlighting median, quartiles, and outliers in the data.

Medians

The middle value in a set of numbers, dividing the data set into two halves.

Histograms

A visual depiction showcasing how numerical data is spread out, illustrated through bars of varying heights.