The Higher the Rate of Interest You Can Earn on Your

question 29

Multiple Choice

The higher the rate of interest you can earn on your investments,the ________ it is to prepay an installment loan.

• A)more appealing
• B)less appealing
• C)There is no connection between the two.
• D)The connection can be made more specific;any time your investment rate exceeds the loan APR,you should prepay the loan.

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Definitions:

Tort

A violation of another person’s rights or a civil wrongdoing that does not arise out of a contract or statute; primary types are intentional, negligent, and strict-liability torts.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or injury due to the unlawful act or omission of another.

Appeal

An appeal is a formal request for a higher court to review and change the decision of a lower court.

Federal Law

The body of law created by the federal government of a country, applicable nationwide.