Homework #4 (Ch.6, Ch.7) 0 Saved Help Save & Exi Submit You received no credit f

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Homework #4 (Ch.6, Ch.7) 0 Saved Help Save & Exi Submit You received no credit for this question in the previous attempt. View previous attempt 5 An amortized loan: points Multiple Choice May have equal or increasing amounts-but not decreasing amounts - of principal paid off with each loan payment Repays both the principal and the interest in one lump sum at the end of the loan term Requires that all payments be equal in amount and include both principal and interest. Requires the principal amount to be repaid in even increments over the life of the loan Requires that all interest be repaid on a monthly basis while the principal is repaid at the end of the loan term Mc Graw

Explanation / Answer

Option - 1 ........ May have equal or Increasing amounts - but not decreasing amount of principle paid off with each installment.

An amortization loan can have equal repayment for principle or increase payment towards principle. It cannot decrease.

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