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A Loan Is Made to a Borrower at a Specified

Question 14

Multiple Choice

A loan is made to a borrower at a specified nominal interest rate. In order for the loan to be fully repaid over a specified term:


A) periodic repayments would be the same whether they were made at the start or end of each period.
B) periodic repayments would be greater if they were made at the start rather than at the end of each period.
C) periodic repayments would be greater if they were made at the end rather than at the start of each period.
D) whether periodic repayments would be greater if they were made at the start or at the end of each period would depend on the specified interest rate.

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