How is the principal amount of an interest-only loan repaid?
A) The principal is forgiven over the loan period so does not have to be repaid.
B) The principal is repaid in equal increments and included in each loan payment.
C) The principal is repaid in a lump sum at the end of the loan period.
D) The principal is repaid in equal annual payments.
E) The principal is repaid in increasing increments through regular monthly payments.
Correct Answer:
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