Which of the Following Correctly Describes an Installment Note

question 28

Multiple Choice

Which of the following correctly describes an installment note?

• A)An installment note requires equal interest payments with the entire principal balance paid at maturity.
• B)An installment note requires equal payments of interest and principal in which the amount of interest decreases over the life of the note.
• C)An installment note requires equal payments of interest and principal in which the amount of interest increases over the life of the note.
• D)The installment note requires decreasing payments of interest and principal in which the amount of interest remains constant over the life of the note.

---

Definitions:

Fixed Frequency

A characteristic of oscillating systems or signals that maintain a constant frequency over time, typically used in various electronics and communications systems.

Solid State

A semiconductor circuit or device.

Solenoid

An electromagnetic device consisting of a coil and armature designed to perform mechanical work when energized. Used in just about every electrical circuit on modern vehicles, whether it be in the starter circuit, transmission, or door locks.

Thermistor

A temperature sensing device used in various electronic circuits in a truck chassis. Consists of a variable resistor, the variance of which correlates with temperature. When supplied with a reference voltage (V-Ref), some of the supply voltage is returned as a signal from which temperature can be calculated. Most truck electrical circuits use negative temperature coefficient (NTC) thermistors in which resistance drops as temperature increases, meaning that the signal voltage increases with temperature rise.