When making a partial payment before the maturity date, the U.S. Rule states:
A) any partial loan payment is applied equally to principal and interest
B) any partial loan payment first reduces the adjusted principal
C) any partial loan payment first reduces the principal
D) any partial loan payment first covers any interest that has accumulated

Question

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The U.S. Rule specifies that any partial payment on a loan is first applied to the interest that has accumulated up to the point of payment before reducing the principal amount of the loan. This ensures that the interest due is paid off before any reduction in the principal occurs.

When Making a Partial Payment Before the Maturity Date, the U.S