In relation to long-term financing,an amortised loan involves:
A) periodic payments principal and interest repaid at maturity.
B) periodic interest and principal repayments when positive cash flows begin.
C) periodic interest payments and principal repaid at maturity.
D) periodic equal repayments of interest and principal throughout the term.

Question

Quizplus · Accepted Answer

An amortized loan involves periodic equal repayments that cover both interest and principal throughout the term of the loan, ensuring that the loan is fully paid off by the end of the term.

In Relation to Long-Term Financing,an Amortised Loan Involves