How Is the Principal Amount of an Interest-Only Loan Repaid

question 94

Multiple Choice

How is the principal amount of an interest-only loan repaid?

• A)The principal is forgiven over the loan period so does not have to be repaid.
• B)The principal is repaid in equal increments and included in each loan payment.
• C)The principal is repaid in a lump sum at the end of the loan period.
• D)The principal is repaid in equal annual payments.
• E)The principal is repaid in increasing increments through regular monthly payments.

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Definitions:

Control Process

is the method by which management ensures that organizational activities are aligned with set standards, plans, and goals, typically involving measurement, comparison, and action.

Establish Performance Objectives

The process of setting specific, measurable, achievable, relevant, and time-bound goals for employees or teams.

Market Control

The ability of a company or group to influence or direct the behavior of the market, usually by dominating supply, price, or innovation.

Bureaucratic Control

A system of managing an organization through a formalized set of rules and procedures, ensuring standardization and consistency across operations.