If a Loan Is Being Paid in Installments Instead of One

question 118

Multiple Choice

If a loan is being paid in installments instead of one lump sum at the end of the loan period, the actual rate of interest

• A) Will be lower than the stated rate.
• B) Will be the same as the stated rate.
• C) Will be higher than the stated rate.
• D) Will be unrelated to the stated rate.
• E) Cannot be determined without knowing the length of the loan period.

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Definitions:

Agonist

A substance that binds to a receptor and activates it to produce a biological response.

Neurotransmission

The process by which signaling molecules called neurotransmitters are released by a neuron and cross the synaptic gap to the receptor sites of another neuron, modulating neuronal activity.

Synapses

The junctions through which neurons communicate with each other or with other types of cells, involving the release and reception of neurotransmitters.

Tolerance

Decrease in response to a drug with the passage of time.