The Process of Making Regular Payments That Reduce the Principal

question 138

Multiple Choice

The process of making regular payments that reduce the principal loan balance is called:

• A) Annuitizing the loan.
• B) Amortizing the loan.
• C) Depleting the loan.
• D) Discounting the loan.
• E) Compounding the loan.

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Definitions:

Coefficient Of Multiple Determination

A statistical measure that represents the proportion of the variance in the dependent variable that is predictable from the independent variables.

Multiple-regression ANOVA

A statistical technique that combines aspects of multiple linear regression analysis and analysis of variance (ANOVA) to understand the relationship between several independent variables and a dependent variable.

Regression Coefficients

Values that estimate the relationship between a dependent variable and one or more independent variables in regression analysis.

Independent Predictors

Variables that can independently forecast the outcome of a dependent variable in a statistical model.