Fixed principal payments and interest are repayable in
A) equal periodic amounts plus interest.
B) varying periodic amounts plus interest.
C) equal periodic amounts including interest.
D) varying periodic amounts including interest.

Question

Fixed principal payments and interest are repayable in 
A) equal periodic amounts plus interest.
B) varying periodic amounts plus interest.
C) equal periodic amounts including interest.
D) varying periodic amounts including interest.

Quizplus · Accepted Answer

Fixed principal payments and interest are usually repaid in equal periodic amounts plus interest, known as equal installment payments. This method of repayment ensures that the borrower repays both principal and interest in equal installments over the life of the loan. This is the most common method of loan repayment.

Fixed Principal Payments and Interest Are Repayable in