Why is it important that businesses provide an amortization table for any large loan?

Question

Responses

It includes every possible expense associated with a loan.

The business can use it to adjust the payments if necessary.

Large loans have very different legal requirements than small loans.

It includes much of the information lenders are legally obligated to provide.

Answer 1

The most relevant response is:

It includes much of the information lenders are legally obligated to provide.

An amortization table is important because it provides a clear breakdown of the loan repayment schedule, showing the principal and interest components of each payment over the life of the loan. This transparency helps borrowers understand the total cost of the loan, how payments are applied, and what their obligations are, aligning with legal requirements for disclosure in lending practices.