As Blended Principal and Interest Payments Are Made on a Long-Term

question 90

Multiple Choice

As blended principal and interest payments are made on a long-term loan,

• A) the interest portion increases and the principal portion decreases.
• B) the interest and principal portions remain the same.
• C) the interest portion decreases and the principal portion increases.
• D) both the interest portion and the principal portion decrease.

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Definitions:

Tchebysheff's Theorem

A statistical theorem stating that for any distribution, a minimum proportion of observations lies within any given number of standard deviations from the mean.

Standard Deviations

A measure of the dispersion or variation in a distribution, indicating how spread out the values are from the mean.

Frequency Table

A table that displays the frequencies of different data categories, showing how often each category occurs in the dataset.

Mound-Shaped Distribution

Another term for a normal distribution, characterized by its bell-shaped curve that is symmetrical around the mean.