Comparing an installment note to a straight note, the straight note will have:

a. a total effective interest rate greater than if the loan were an installment loan.
b. equal annual principal reduction payments.
c. no principal payments during the term of the loan except on the last payment
d. none of the above.

Answer: c. no principal payments during the term of the loan except on the last payment

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The times-interest-earned ratios of four companies are given below

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Disability insurers are generally unwilling to provide insurance replacing more than 60- 70% of lost income

Indicate whether the statement is true or false

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