Which loan repayment schedule will result in less being paid over the life of the term?
A) equal monthly payments
B) decreasing monthly payments
C) straight-line payments
D) amortized payments

Question

Quizplus · Accepted Answer

Decreasing monthly payments result in less interest being paid over the life of the loan because the principal is reduced more quickly, leading to less interest accruing over time.

Which Loan Repayment Schedule Will Result in Less Being Paid