It Would Be Advisable to Make Additional Loan Payments If

question 35

True/False

It would be advisable to make additional loan payments if the interest rate is eight percent,rather than investing in short-term interest-bearing securities offering four percent.

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Definitions:

Slight Majority

A small more than half portion of a group or quantity, indicating a narrow margin over the minority.

Americans

are citizens of the United States of America or individuals closely associated with the country.

Bad Debts

Accounts receivable that a company does not expect to collect because customers are unable to pay their debts.

Credit Sales

Sales made by a business where the payment is received after the sale has been made, typically recorded as accounts receivable.