Reading Review MODULE 6

If the loan payment begins more than one interest period after receipt of principal, then the type of loan is A principal payment. An immediate payment loan. A deferred payment loan. A bond.

A deferred payment loan.

The payoff amount is the total amount required to pay off a loan. The payoff amount includes Current payment and unpaid balance (immediately after current payment). Unpaid balance (immediately after current payment). Deferred payment. Current payment.

Current payment and unpaid balance (immediately after current payment).

he first thing paid in repaying a loan is Principal. Face value. Interest. Interest and principal (that is, both are paid off equivalently).

Interest.

What does a loan payment consist of? The interest component and the par value. The principal component and the bond rate. The par value and the bond rate. The principal component and the interest component.

The principal component and the interest component.

What is an immediate payment loan? The portion of a loan that refers to the amount borrowed. When the loan payment begins one interest period after receipt of the principal. When the loan payment begins more than one interest period after receipt of the principal. A long-term note issued by a borrower to a lender, typically for the purpose of financing a large project.

When the loan payment begins more than one interest period after receipt of the principal.