Suppose you pay only the interest on a loan. Will the loan ever be paid off? Why or why not? Question content area bot
Posted: Mon Jul 11, 2022 12:50 pm
Suppose you pay only the interest on a loan. Will the loan everbe paid off? Why or why not?
Question content area bottom
Part 1
Choose the correct answer below.
A.
No. If only the interest is paid, the principal neverdecreases.
B.
Yes. All payments are split evenly between interest andprincipal.
C.
Yes. If only the interest is paid, the principal willdecrease over time.
D.
No. Interest increases consistently throughout the term of theloan.
Question content area bottom
Part 1
Choose the correct answer below.
A.
No. If only the interest is paid, the principal neverdecreases.
B.
Yes. All payments are split evenly between interest andprincipal.
C.
Yes. If only the interest is paid, the principal willdecrease over time.
D.
No. Interest increases consistently throughout the term of theloan.