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.

---

Definitions:

Critics

Individuals or groups who express judgments or evaluations, especially negative or analytical ones, about creative works, products, actions, or policies.

Pluralist Theory

A theory in political science and sociology that argues power is distributed among many groups in society, preventing any one group from gaining dominance.

Democratic Process

The methods and procedures used in a democracy to ensure that citizens have the opportunity to participate in decision-making, typically through voting and public discourse.

Russia

A sovereign country in Eastern Europe and Northern Asia, known for its significant historical, cultural, and geopolitical influence.