To account for a down payment, adjust the ____ of the loan by subtracting it from the loan amount.

Name: To account for a down payment, adjust the ____ of the loan by subtracting it from the loan amount.
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Question

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The present value (pv) of the loan takes into account the initial amount borrowed, so subtracting the down payment from the loan amount will adjust this value accordingly. This method is commonly used in loan amortization schedules. Choices B, C, and D are not relevant to adjusting for a down payment.

To Account for a Down Payment, Adjust the ____ of the Loan