Which Statement Is Correct Regarding Amortized Loans with Equal Payments

question 86

Multiple Choice

Which statement is correct regarding amortized loans with equal payments?

• A)If you pay more than the scheduled amount,the additional payment will reduce the total interest paid over the life of the loan.
• B)The final loan payment will all be applied to the outstanding principal balance.
• C)The interest is paid only at loan maturity.
• D)If you pay more than the scheduled amount,the additional payment will increase the remaining principal balance.
• E)The principal portion of each payment will decrease over time.

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Definitions:

High-Frequency Deafness

A hearing impairment characterized by difficulty hearing sounds at higher frequencies, often affecting speech understanding.

Ototoxic

Having a toxic effect on the ear or its nerve supply, often referring to drugs or substances that can cause hearing loss or balance disorders.

Gentamicin

An antibiotic used to treat various bacterial infections, especially those caused by bacteria resistant to other antibiotics.

External Ear

The outer portion of the ear, consisting of the pinna and the ear canal, which gathers sound waves and directs them inward.