A Personal Loan Is Different from a Credit Card in That

question 107

True/False

A personal loan is different from a credit card in that it is normally used to finance one large purchase.

---

Definitions:

Amortized Bond Discount

The gradual reduction of the discount on a bond over its life, moving towards its par value, usually done in equal amounts over the accounting periods.

Straight-Line Method

A method of allocating an asset's cost evenly throughout its useful life.

Redemption

The act of repaying or buying back something, such as redeeming a bond at maturity or a company repurchasing its own shares.

Semiannual Interest

Interest that is calculated and paid twice a year on a loan or investment.