A fully amortized loan has equal monthly payments. The portion of the payment applied to principal:
a. goes down each month.
b. remains unchanged.
c. goes up each month.
d. goes up by equal amounts each month.
Answer: c. goes up each month.
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Which one of the following statements about trend analysis is NOT correct?
A) This benchmark is based on a firm's historical performance. B) It allows management to examine each ratio over time and determine whether the trend is good or bad for the firm. C) The Standard Industrial Classification (SIC) System is used to identify benchmark firms. D) All of the above are true statements.
Suppose the charitable organization contacted Aunt Anastasia and told her that they had underestimated the amount of rabbits they needed. Instead of 25 rabbits, they need 35. How would this affect Aunt Anastasia's profits?
A) Profits would increase by $5. B) Profits would decrease by $5. C) Profits would increase by $2.50. D) Profits would decrease by $2.50.