The Size of the Monthly Payment on a Loan Is

question 51

Multiple Choice

The size of the monthly payment on a loan is dependent on all of the following except

• A)principal borrowed.
• B)interest rate.
• C)your age.
• D)maturity.

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Definitions:

CCA Tax Shield

A deduction that allows businesses to depreciate the cost of an asset over time for tax purposes, reducing their taxable income.

Lessee

A lessee is a person or entity who rents land or property from a lessor under the terms of a lease.

Lessor

An entity or individual that rents out an asset or property to another party, known as the lessee.

Tax Rate

A percentage at which an individual or corporation is taxed.