As the Number of Monthly Payments on a Loan Increases

question 17

Multiple Choice

As the number of monthly payments on a loan increases, the size of each payment [blank] and the total interest paid over the life of the loan [blank].

• A)increases, decreases
• B)decreases, stays the same
• C)stays the same, decreases
• D)decreases, increases

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Definitions:

Prestigious

Describes something that is admired and respected for its quality, status, or importance.

Higher Salary

An increased amount of money paid for employment, often reflecting higher levels of responsibility, education, or skill.

Worker Productivity

A measurement of the efficiency and effectiveness with which workers accomplish tasks, often gauged as output per unit of input, such as hours worked.

Real Earnings

Earnings adjusted for differences in the general level of prices across time periods or geographic areas. When real earnings are equal, the same bundle of goods and services can be purchased with the earnings.