Which of the Statements Below Is FALSE

question 39

Multiple Choice

Which of the statements below is FALSE?

• A)Reducing principal at a faster pace reduces the overall interest paid on a loan.
• B)The more frequent the payment,the lower the total interest expense over the life of the loan,even though the effective rate of the loan is higher.
• C)Reducing principal at a faster pace increases the overall interest paid on a loan.
• D)Monthly interest on a loan is equal to the beginning balance times the periodic interest rate.

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