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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