Which of the Following Is True for Fixed Principal Commercial

question 2

Multiple Choice

Which of the following is true for Fixed Principal Commercial Loans?

• A) The bank calculates the total interest due even on variable interest loans.
• B) The bank provides an amortization schedule with a variable interest loan.
• C) The borrower will probably be required to make a 20 percent down payment.
• D) The borrower does not have to make a down payment.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price during a specified time period.

Price

The price expected, requisite, or delivered in remuneration for an object or service.

Market Price

The contemporary valuation at which a commodity or service can be acquired or disposed of in a commercial environment.

Equilibrium Market Price

The cost level where the amount of products offered matches the amount of products sought after in a marketplace.