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Loan amortization, which refers to determining equal annual loan payments, can be implemented by which of the following?
a. Adding the loan amount by the interest factor for the present value of an annuity for the appropriate discount rate and number of years
b. Subtracting the loan amount by the interest factor for the present value of an annuity for the appropriate discount rate and number of years
c. Multiplying the loan amount by the interest factor for the present value of an annuity for the appropriate discount rate and number of years
d. Dividing the loan amount by the interest factor for the present value of an annuity for the appropriate discount rate and number of years
e. Summed up the loan amount by the interest factor for the present value of an annuity for the appropriate discount rate and number of years
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If the cost of a cell phone has decreased 400% during the past 10 years, does that correspond to a cost decrease of four times? Explain your answer as though you were talking to someone who has never taken algebra.
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