With an Interest-Only Loan the Principal Is

question 101

Multiple Choice

With an interest-only loan the principal is: 

• A) forgiven over the loan period; thus it does not have to be repaid.
• B) repaid in decreasing increments and included in each loan payment. 
• C) repaid in one lump sum at the end of the loan period. 
• D) repaid in equal annual payments. 
• E) repaid in increasing increments through regular monthly payments. 

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Definitions:

Probabilities

The likelihood or chance that a particular event or outcome will occur, often expressed as a percentage or ratio.

Intuition

Intuition refers to understanding or knowing something without conscious reasoning; an immediate insight.

Flexibility

The ability to adapt or adjust to new conditions or circumstances without difficulty.

Spontaneity

The quality of being impulsive or of acting without premeditation.