Payment divided by principle or balance of loan

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Reference no: EM132259819

1. Interest is the way we recognize that compensation is needed for waiting until the future to use money.

True

False

2. An interest rate is the interest payment divided by the principle or balance of a loan.

True

False

3. You may earn interest on interest and principal.

True

False

4. Equity is a means of funding short-term investments by using owners' capital.

True

False

5. Stocks (or shares) are certificates that represent ownership in an entity.

True

False

Reference no: EM132259819

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