Which Statement Is Correct Regarding Amortized Loans with Equal Payments

question 34

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:

Duodenum

The first part of the small intestine immediately beyond the stomach, key in digestion and absorption of nutrients.

Jejunum

The middle section of the small intestine in humans and most higher vertebrates, responsible for the absorption of nutrients.

Ileum

The final and longest segment of the small intestine, where most of the nutrients from digested food are absorbed.

Cardia

The region where the esophagus connects to the stomach, acting as a crucial entry point for food into the stomach.