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.

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.
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