Asked by
Dontae Lunan
on Nov 08, 2024
Verified
Each month that Jennifer pays a payment on her personal loan, the amount that is applied to the principal balance increases. Jennifer has a(n) _____ loan.
A) Amortized.
B) Balloon.
C) Variable.
D) Discount.
E) Interest-only.
Amortized
The process of paying off a debt through regular payments that cover both principal and interest.
Principal Balance
The outstanding amount of a loan or mortgage that remains to be paid, not including interest.
Personal Loan
A type of unsecured loan provided by financial institutions based on the borrower’s creditworthiness without collateral.
- Understand the concept and implications of different loan types including amortized, balloon, interest-only, and variable loans.
Verified Answer
PN
Learning Objectives
- Understand the concept and implications of different loan types including amortized, balloon, interest-only, and variable loans.