Click to watch the Concept Clip Installment Credit video and then answer the questions below. 1. Why is there more interest pald at the beginning of a loan than at the end? a. Banks want to recoup at the beginning the money they loaned. b. Interest is carried over each month and recalculated, thus increasing the percentage. C. At the beginning of the loan, the principal balance is larger than it is at the end. d. The interest percentage rate drops throughout the life of the loan. 2. How are a car loan and mortgage alike? a. They are both installment loans. b. There is nothing similar about them. C. They both have the same interest rate. d. Both loans are considered assets. 3. Which is a true statement? a. Payments on installment loans consist of neither principal nor interest. b. Payments on installment loans consist of interest only C. Payments on installment loans consist of principal only d. Payments on installment loans consist of both principal and interest. Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below. 1. The journal entry to record the issuance of a note to a creditor to satisfy an account payable created earlier would include a a. credit; Accounts Payable b. credit; Notes Payable c. debit; Notes Payable d. debit; Inventory 2. On December 1, a company accepted a $5,000, 4%, 90-day note. How much accrued interest will be recorded as an adjusting entry on December 31, the end of the accounting period? a. $166.67 b. $16.67 c. $1.67 d. $0.00; interest is not accrued at year-end