If You Double the Principal Repayment Called for on Your

question 80

Multiple Choice

If you double the principal repayment called for on your car loan each month without doubling the interest payment, you will

• A) reduce the term of the loan by half.
• B) reduce the amount of interest you pay by about 30%.
• C) not have much effect since you are not also doubling the interest paid monthly.
• D) Both A and B are correct.

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