interest rate multiplied by the ending balance that year not the original principal * 1 point\nfixed\nsimple\…

interest rate multiplied by the ending balance that year not the original principal * 1 point\nfixed\nsimple\nvariable\ncompound\nthe smaller the principal left in a loan * 1 point\nthe .......\nless interest can be earned by the lender\nless interest can be earned by the borrower\nwhat should you investigate first * 1 point\nbefore accepting a credit card offer?\nthe simple interest\nthe compound interest\napr after introductory rate\napr before the introductory rate
Answer
Brief Explanations:
- In compound - interest, the interest is calculated based on the ending balance of the previous period (including principal and accumulated interest), not just the original principal.
- Interest is earned by the lender. The smaller the principal left in a loan, the less interest the lender can earn as interest is calculated based on the principal amount outstanding.
- When considering a credit - card offer, the most important thing to investigate first is the APR (Annual Percentage Rate) after the introductory rate as the introductory rate is usually a short - term promotional rate and the long - term cost is determined by the APR after it expires.
Answer:
- D. compound
- A. less interest can be earned by the lender
- C. APR after introductory rate