Which of the Following Correctly Describes an Installment Note

question 122

Multiple Choice

Which of the following correctly describes an installment note?

• A)An installment note requires interest payments with the entire principal balance paid at maturity.
• B)An installment note requires payments of interest and principal in which the amount of interest decreases over the life of the note.
• C)An installment note requires payments of interest and principal in which the amount of interest increases over the life of the note.
• D)The installment note requires decreasing payments of interest and principal in which the amount of interest remains constant over the life of the note.