As the months progress on an amortized loan...

1 answer:

8 0

As the month progress on an amortized loan, the payment size stays the same, and the principal is paid down more quickly. Hence, option A is appropriate.

<h3>What is an Amortized Loan?</h3>

Amortized Loans are generally to be given to someone willing to undertake the following things including housing loans or even loans on other commodities. An Amortized loan is generally tasked with quite a few things, these loans are applicable for items of small quantity, whereby the loan amount can be taken into account.

An Amortized Loan is one of the following things which when being called upon can also look toward a certain set of beliefs and ideals. An Amortized loan is generally taken for almost a short period whereby the people are bound to pay the principal amount for a longer duration. But the interest rate can be neglected.

An Amortized loan reduces the value of the interest or nullifies it completely by only taking the amount loaned for. Hence, option A is correct.

Learn more about the Amortized Loan here:

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