Question

What does the product 𝐿12×𝑖12 represent?

a.

Nothing. This expression is complete nonsense.

b.

the interest component of the 13𝑡ℎ payment

c.

The interest paid in the second year.

d.

the interest component of the 12𝑡ℎ payment

Answer 1

b. the interest component of the 13𝑡ℎ payment