Under the Rule of 78, the interest earned by the lender is A) ...

[cdr_15]

Under the Rule of 78, the interest earned by the lender is
 
  A)
 
  disproportionately pushed to the front of the loan period.
  B)
 
  calculated using the simple interest method.
  C)
 
  uniformly spread over the life of the loan.
  D)
 
  a miscellaneous deduction on your federal tax form.

Question 2

Joe is deciding whether or not to invest 10,000 in a business that has pending lawsuits against it. If Joe invests and the business loses the lawsuits, the most Joe can lose is:
 
  A) 10,000 if Joe is a general partner.
  B) 10,000 if Joe is a sole proprietor.
  C) 10,000 if Joe is a limited partner.
  D) 10,000 plus his share of the lawsuits if Joe is a limited partner.

[Cheesycrackers]

Answer to Question 1

A

Answer to Question 2

C