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With an Interest-Only Loan the Principal Is

Question 33

Multiple Choice

With an interest-only loan the principal is: 


A) forgiven over the loan period; thus it does not have to be repaid.
B) repaid in decreasing increments and included in each loan payment. 
C) repaid in one lump sum at the end of the loan period. 
D) repaid in equal annual payments. 
E) repaid in increasing increments through regular monthly payments. 

Correct Answer:

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