The Costs Which Can Be Avoided If We Alter Our

question 6

Multiple Choice

The costs which can be avoided if we alter our decisions or choices are referred to as:

• A)average costs.
• B)opportunity costs.
• C)marginal costs.
• D)sunk costs.

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Definitions:

Loan Payment

A payment made to reduce the outstanding balance of a loan, often made on a monthly basis.

Compounded Monthly

Pertains to the frequency in which interest earnings are added to the principal investment amount, occurring every month.

Monthly Payment

Monthly payment is the amount of money paid each month towards the repayment of a loan, mortgage, or other financial obligation.

Loan

Money borrowed that is expected to be paid back with interest.