What Type of Loan Requires Both Principal and Interest Payments

question 52

Multiple Choice

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

• A)Amortized loan
• B)Interest-only loan
• C)Discount loan
• D)Compound loan

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Definitions:

Dopamine

A neurotransmitter involved in regulating movement, mood, reward, and pleasure.

Euphoria

An intense state of happiness, confidence, or well-being, sometimes artificially induced through the use of substances.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body.

Fire

A rapid oxidation process that produces light, heat, and typically smoke, often used for warmth, cooking, or as a method of signaling.