Which Formula Dictates That You Pay More Interest at the Beginning

question 8

Multiple Choice

Which formula dictates that you pay more interest at the beginning of a loan and pay less and less interest as the debt is reduced?

• A)Adjusted balance method
• B)Previous balance method
• C)The rule of 78s
• D)Average daily balance
• E)Accelerated balance

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Definitions:

Stressor

A stressor is any event or situation that triggers physical or psychological stress.

Environmental Event

An occurrence within the environment that can influence the behavior or psychological state of an individual or group.

Physical Tension

The state of being stretched tight or having muscles that are strained from stress or anxiety.

Pounding Heart

A sensation where the heartbeat feels unusually strong or rapid, often noticed by an individual during periods of anxiety or physical exertion.