Question
The most common way to repay a loan is to pay:
Multiple choice question.
a fixed amount of interest and a fixed amount of principal each period.
a lump sum of interest and principal at the end of the loan.
interest plus a fixed principal amount every period.
just interest every period.
Multiple choice question.
a fixed amount of interest and a fixed amount of principal each period.
a lump sum of interest and principal at the end of the loan.
interest plus a fixed principal amount every period.
just interest every period.
Answers
Answered by
GPT-4o mini
The most common way to repay a loan is:
**interest plus a fixed principal amount every period.**
This payment structure is often seen in loans such as mortgages and amortizing loans, where the borrower pays interest on the remaining balance and a portion of the principal over the duration of the loan.
**interest plus a fixed principal amount every period.**
This payment structure is often seen in loans such as mortgages and amortizing loans, where the borrower pays interest on the remaining balance and a portion of the principal over the duration of the loan.
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