An Amortized Loan

question 36

Multiple Choice

An amortized loan: 

• A) requires the principal amount to be repaid in even increments over the life of the loan. 
• B) may have equal or increasing amounts applied to the principal from each loan payment. 
• C) requires that all interest be repaid on a monthly basis while the principal is repaid at the end of the loan term. 
• D) requires that all payments be equal in amount and include both principal and interest. 
• E) repays both the principal and the interest in one lump sum at the end of the loan term. 

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Definitions:

Time Horizon Categories

The classification of planning or forecasting periods into short-term, medium-term, and long-term, based on their respective durations.

Short-Range

Pertaining to activities, planning, or forecasting that covers a relatively brief period of time, typically up to one year.

Medium-Range

Pertaining to the intermediate term, often in the context of planning, forecasting, or operations.

Long-Range

Pertaining to strategic decisions or actions that consider and impact a significant period into the future, often beyond the immediate or short term.