Which type of loan involves regular repayments which include principal and interest?
A)Bond.
B)Commercial Bill.
C)Principle-and-Interest loan.
D)Interest-Only Loan.

Question

Quizplus · Accepted Answer

Principle-and-Interest loan involves regular repayments which include both principal and interest. This type of loan is commonly used for mortgages and personal loans, where the borrower makes fixed payments over a set period of time until the loan is fully repaid. Bond and Commercial Bill are types of debt securities, whereas Interest-Only Loan only requires repayment of the interest amount and not the principal amount.

Which Type of Loan Involves Regular Repayments Which Include Principal