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What Type of Loan Requires Both Principal and Interest Payments

question 52

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What type of loan requires both principal and interest payments as you go by making equal payments each period?


Definitions:

Interest Rates

Interest rates represent the cost of borrowing money, expressed as a percentage of the loan amount, paid by the borrower to the lender for the use of funds.

Equivalent Risk

A concept in finance that refers to equating the risk level of an investment with another, for comparison or investment decision purposes.

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