If a Term Loan Requires Equal Annual Payments That Retire

question 26

Multiple Choice

If a term loan requires equal annual payments that retire the loan and pay the interest, that is similar to​

• A) lease payments​
• B) ​mortgage payments
• C) ​dividend payments
• D) ​a sinking fund

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Definitions:

Imported Good

A product or service that is brought into one country from another for the purpose of being sold or used, reflecting trade relationships and economic dependencies between nations.

Tax

Mandatory financial charge or some other type of levy imposed on a taxpayer by a governmental organization.

World Price

The global market price of a product or service, set by worldwide demand and supply.

Import or Export

The act of bringing goods or services into a country (imports) or selling goods or services to another country (exports).