Which of the following statements is FALSE concerning amortization schedules? a. The beginning balance of one...

Which of the following statements is FALSE concerning amortization schedules? a. The beginning balance of one year is equal to the ending balance of the following year. b. You can either level principal payments or level total payments but not both. c. The interest payment is calculated as the balance multiplied times the interest rate. d. The total payment equals the principal payment plus the interest payment. e. None of the above is false.

Expert Solution

a. The beginning balance of one year is equal to the ending balance of the following year.

This statement is false.

Balance is the amount of loan that has to be repaid.

Every year the balance reduces as we pay our installments.

So the beginning balance of one year will be higher than the ending balance of next year. Hence the above statement is false.

b. You can either level principal payments or level total payments but not both.

c. The interest payment is calculated as the balance multiplied times the interest rate.

d. The total payment equals the principal payment plus the interest payment.

These statements are true.

You can either pay equal installments every month(total payment) consisting of principal+interest or choose to pay level principal payments with the amount of interest changing every month.
Interest payment = balance * interest rate
Total payment = Principal + interest

If you have any doubts please let me know in the comments. Please give a positive rating if the answer is helpful to you. Thanks.

jeff jeffy answered 1 year ago

Which of the following statements concerning depreciation is false?

Which of the following statements concerning depreciation is false? a. Depreciation expense occurs because the cost of long-term assets such as buildings and equipment must be matched to the revenues produced by those assets. b. Depreciation expense on the income statement “flows through” to the accumulated depreciation account on (or in the notes section of) the balance sheet. c. The net property and equipment account on the balance sheet is equal to gross fixed assets plus accumulated depreciation. d. Depreciation...

Decide which of the following statements are true and which are false, concerning the kinetic molecular...

Decide which of the following statements are true and which are false, concerning the kinetic molecular theory. 1. The particles are assumed to exert no forces on each other; they are assumed neither to attract nor to repel each other. 2. The molecules in a real gas have finite volumes and do exert forces on each other, thus real gases do not conform to some of the assumptions of an ideal gas as stated by the kinetic molecular theory. 3....

Which one of the following statements is correct concerning these loans?

First Bank offers personal loans at 7.6 percent compounded monthly. Second Bank offers similar loans at 7.75 percent compounded semi-annually. Which one of the following statements is correct concerning these loans?Group of answer choicesThe First Bank loan has an effective rate of 7.67 percent.The Second Bank loan has an effective rate of 8.03 percent.The annual percentage rate for the Second Bank loans is 7.90 percent.Borrowers should prefer the loans offered by Second Bank.The First Bank offers the best deal on...

Which of the following statements concerning financial risk is false? a. Generically, financial risk is...

Which of the following statements concerning financial risk is false? a. Generically, financial risk is related to the probability of a return less than expected. b. If an investment is held in isolation (stand-alone), the appropriate measure of risk is the beta coefficient. c. In theory, you can create a riskless portfolio by combining a large number of investments whose returns are uncorrelated (independent of one another). d. In the real world, it is not possible...

Which of the following statements is false concerning bonding? (1) A H-Cl bond is an example...

Which of the following statements is false concerning bonding? (1) A H-Cl bond is an example of a polar covalent bond. (2) The bond in HCl is formed by sharing electrons (3) In general, chemical bonds form to minimize energy. (4) In a N-O bond, electron density is greater near the N atom (5) Elements with extremely different electronegativities tend to form ionic bonds with each other.

13.Which of the following statements is FALSE concerning the Absolute Priority Rule? a. Common Stockholders are the...

13.Which of the following statements is FALSE concerning the Absolute Priority Rule? a. Common Stockholders are the last to be paid in a bankruptcy. b. Secured Creditors do not appear on the list at all. c. Consumer claims are paid after government claims. d. Bondholders are included in Unsecured Creditors. e. Lawyers generally get their money first. 14. Keep Going, Inc. has 30% common stock, 10% preferred stock, and 60% debt. Its cost of equity is 12%, cost of preferred stock is 8% and cost of debt...

Which one of the following statements is correct concerning the standard deviation of a portfolio? A....

Which one of the following statements is correct concerning the standard deviation of a portfolio? A. The greater the diversification of a portfolio, the greater the standard deviation of that portfolio. b. The standard deviation of a portfolio can often be lowered by changing the weights of the securities in the portfolio? c. Standard deviation is used to determine the amount of risk premium that should apply to a portfolio. d. Standard deviation measures only the systematic risk of a...

Which one of the following statements concerning the electron in the ground state in a hydrogen...

Which one of the following statements concerning the electron in the ground state in a hydrogen atom is true within the quantum mechanical model of the atom? The ground state electron has zero binding energy. The ground state electron has zero ionization energy. The ground state electron has zero kinetic energy. The ground state electron has zero orbital angular momentum. The ground state electron has zero spin angular momentum.

Which of the following statements is FALSE? Select one: a. It is possible to face with...

Which of the following statements is FALSE? Select one: a. It is possible to face with multiple IRRs. b. The Discounted Payback Method provides a solution for all the shortcomings of the Payback Period Method. c. None of the above d. A NPV will always exist for an investment opportunity. Which of the following is NOT an equity market instrument? Select one: a. Government Bonds b. Common Stocks c. Preferred Stocks d. None Which of the following is NOT an...

which of the following statements concerning Good Samaritan Laws is FALSE: a. Good Samaritan laws guarantee...

which of the following statements concerning Good Samaritan Laws is FALSE: a. Good Samaritan laws guarantee freedom from liability when rendering aid in an emergency. b. Good Samaritan laws offer protection for liability for negligence if the care rendered is reasonable. c. These laws are designed to encourage health care professions to stop and render aid to accident victims.

Question