Mr. Gomez took out a loan for improvements to his real property that was fully amortized. If the loan provides that there are equal monthly payments, the amount credited to the principal will:
A: Decrease at a constant amount and the interest payment increases;
B: Increase at a constant amount as the interest payment decreases;
C: Increase while the interest payment decreases;
D: None of the above.
Answer: C: Increase while the interest payment decreases;
Business
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A one-sample nonparametric goodness-of-fit test to determine whether the observations for a particular variable could reasonably have come from a particular distribution is the ________
A) Kolmogorov-Smirnov one-sample test B) runs test C) binomial test D) Mann-Whitney U test
Business
Financial leverage is distinct from operating leverage since it accounts for
A) variability in fixed operating costs. B) changes in EBIT. C) use of debt and preferred stock. D) variability in sales.
Business