Which of the Following Statements Regarding Loan Maturity Is True

question 64

Multiple Choice

Which of the following statements regarding loan maturity is true?

• A) The longer the loan maturity, the higher the amount of interest paid.
• B) The shorter the loan maturity, the higher the total cost of borrowing.
• C) The longer the loan maturity, the higher the monthly payments.
• D) The shorter the loan maturity, the lower the monthly payments.
• E) The longer the loan maturity, the lower the total cost of borrowing.

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Definitions:

Median

Median is the middle value in a dataset when the values are arranged in ascending or descending order.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of values, frequencies, or probabilities for a set of data where most occurrences take place around the average.

Symmetrical

Having similar shape and size on both sides of a dividing line, leading to a balanced and proportionate appearance.

Central Tendency

A statistical measure that identifies a single value as representative of the middle of a dataset, including the mean, median, and mode.