This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following statements is FALSE if you increase your monthly payment above the required ... (Read 20 times)

jeatrice

  • Hero Member
  • *****
  • Posts: 543
on: Jul 10, 2018
Which of the following statements is FALSE if you increase your monthly payment above the required loan payment?
 
  A) The extra portion of the payment goes to the principal.
  B) You can significantly decrease the number of payments needed to pay off the loan.
  C) The extra portion of the payment increases the principal.
  D) Besides lowering the principal, you can significantly reduce the number of payments needed to pay off the loan.

Question 2

Which of the following has the highest interest rate risk?
 
  A) Bendix Corporation six-month commercial paper
  B) a Southwest Airlines bond maturing in four years
  C) a six-month money-market certificate at a federally issued bank
  D) a 20-year U.S. Treasury bond


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Kingjoffery

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: C
Explanation: C) If you increase your monthly payment above the required loan payment, then the additional portion of the payment goes to DECREASING the principal. But the important fact to note is that an extra payment above the required annuity can significantly reduce the number of payments needed to pay off the loan.

Answer to Question 2

D


jeatrice

  • Member
  • Posts: 543
Reply 2 on: Jul 10, 2018
:D TYSM

cassie_ragen

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

The calories found in one piece of cherry cheesecake could light a 60-watt light bulb for 1.5 hours.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Historian James Merrell notes several errors in Benjamin West’s famous 1771 painting, William Penn’s Historian James Merrell notes several errors in Benjamin West’s famous 1771 painting, William Penn’s
The medical assisting profession offers many settings in which to pursue your career. Good communica The medical assisting profession offers many settings in which to pursue your career. Good communica
Mean scores for Erikson’s stage V (Identity) for two cohorts. Scores for both cohorts increase ... Mean scores for Erikson’s stage V (Identity) for two cohorts. Scores for both cohorts increase ...
Atmospheric pressure decreases with increase in altitude. Atmospheric pressure decreases with increase in altitude.
How to convert verbal statements into algebraic equations (Part 2) How to convert verbal statements into algebraic equations (Part 2)
Increase in rainfall on continents Increase in rainfall on continents
Video: Embryonic development - Weeks 5 to 8

For a complete list of videos, visit our video library