A fairly good estimate for a long-term loan with a moderate or high interest rate is that the monthly payment is _______________ as large as the principal times the monthly interest rate.

Question

Quizplus · Accepted Answer

For a long-term loan with a moderate or high interest rate, the monthly payment needs to cover not only the interest but also a portion of the principal. Therefore, it is at least as large as the principal times the monthly interest rate, to ensure both interest and principal are being paid down over time.

A Fairly Good Estimate for a Long-Term Loan with a Moderate