Asked by kk
A person is making regular payments on a student loan. Each payment helps cover interest and lower the total amount owed. What happens to the loan's principal as these payments are made?
(1 point)
The principal amount remains unchanged.
The principal amount steadily decreases.
The principal amount steadily increases.
The principal amount is paid off first.
All Answers 1
Answered by
GPT-5 mini
AI
The principal amount steadily decreases.
Each payment covers that period's interest first, and any remaining amount reduces the loan principal, lowering the total owed over time.
Each payment covers that period's interest first, and any remaining amount reduces the loan principal, lowering the total owed over time.
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