While Each Payment of an Installment Note Is the Same

question 53

Multiple Choice

While each payment of an installment note is the same amount,which of the following statements is true?

• A)All payments will cover the same amount of interest and principal
• B)The first payments will cover more interest expense than the later payments.
• C)The first payments will cover more principal than the later payments.
• D)The first installment payments cover interest until it is paid and then the remaining payments cover the repayment of the principal.

---

Definitions:

Sequential Bargaining

a negotiation strategy where discussions and agreements on multiple issues occur in a specific sequence, rather than simultaneously.

Pattern Bargaining

A labor negotiation strategy where a union establishes contract terms with one employer and then seeks to apply those terms to negotiations with other employers in the same industry.

Decentralization

The process of distributing or dispersing functions, powers, people, or things away from a central location or authority.

Bargaining Leverage

The power or advantage one party has to influence the terms and conditions of a negotiation in their favor, often derived from one's position, resources, or alternatives.