Which One of the Following Is True Concerning Amortized Loans

question 128

Multiple Choice

Which one of the following is true concerning amortized loans?

• A) A loan where annual payments include the interest due plus some set amount of principal is an amortized loan.
• B) Amortized loans all have a balloon payment at the end of the loan term.
• C) Amortized loan payments consist of interest only.
• D) An amortized loan requires only one lump sum payment at the end of the loan term.
• E) An amortized loan is a type of a pure discount loan.

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Definitions:

Old Age

A period in a person's life characterized by advanced age, often considered to start in the late 60s or early 70s, associated with retirement, transitioning lifestyles, and increased focus on health.

Fromm

Erich Fromm, a renowned psychoanalyst and social psychologist known for his theories on social character, freedom, and human nature.

Normal Behavior

Actions or reactions that are common and accepted within a society or culture.

Erikson

A developmental psychologist known for his theory on the psychosocial development of humans, which outlines eight stages that individuals pass through from infancy to adulthood.