Which of the Following Is NOT True with Regard to an Amortization

question 25

Multiple Choice

Which of the following is NOT true with regard to an amortization table?

• A)The interest payment for a period is equal to the periodic interest rate multiplied by the beginning-of-the-period principal balance.
• B)The remaining principal balance at the end of a payment period is equal to the beginning-of-the-period principal less the total payment.
• C)The total payment is calculated by using the present value of an annuity formula.
• D)All of the above are true.

Understand and apply the concept of simple interest to various financial scenarios.

Calculate the interest rate, principal, and total amount due on loans and investments using simple interest.

Analyze financial decisions involving payment options, interest rates, and investment returns.

Calculate equivalent payments and understand the time value of money in financial decisions.

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Definitions:

Inferential Statistics

A branch of statistics that uses a random sample of data taken from a population to describe and make inferences about the population.

Randomly Selected

A method of selection where each member of a population has an equal chance of being chosen, often used to ensure unbiased samples in research.

Inferential Statistics

A branch of statistics that allows one to make predictions or inferences about a population based on a sample.

Type I Error

Deciding wrongly that there was a significant result when in fact there was not.