Temple Corporation purchased a piece of real estate, paying $400,000 cash and financing $700,000 of the purchase price with a 10
-year, 15% installment note. The note calls for equal monthly payments that will result in the debt being completely repaid by the end of the tenth year. In this situation: a. The aggregate amount of the monthly payments is $700,000.
b. Each monthly payment is greater than the amount of interest accruing each month.
c. The portion of each payment representing interest expense will increase over the 10-year period, since principal is being paid off, yet the payment amount does not decrease.
d. The portion of each monthly payment representing repayment of principal remains the same throughout the 10-year period.
Remember, your skill at choosing that product or service is critical to your success. The most important thing you can do before deciding what to sell is to think. And the more you think about a product or service before you bring it to market, the better your decisions will be.
I would say the word could be reliable in other words that the sources of the information are reputable and with a proven track record so that the information can give confidence that it is legitimate and not rigged or sham.
