Which One of the Following Terms Is Used to Describe

question 127

Multiple Choice

Which one of the following terms is used to describe a loan that calls for periodic interest payments and a lump sum principal payment?

• A)amortized loan
• B)modified loan
• C)balloon loan
• D)pure discount loan
• E)interest-only loan

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Definitions:

Probability

The likelihood or chance of an event occurring, expressed as a number between 0 and 1.

Parameter Data

Data or values that define or control the behavior of a mathematical function or system.

Nominal Data

This data type categorizes variables without a natural order or ranking among the categories.

Ordinal Data

A type of categorical data in which the order of values is significant, but the differences between values are not necessarily consistent.