Explain in general terms how the portion s of loan payment going to principal and interest change over the life of the loan . A. Installment loans gradually pay down the loan principal while the payments remain the same . Therefore , the interest due each month gradually decreases and the amount paid toward the principal gradually increases. B. Installment loans gradually pay down the loan principal while the payments remain the same. Therefore , the interest remains the same and the amount paid toward the principal gradually decreases. C. Installment loans gradually pay down the loan principal while the payments remain the same . Therefore , the interest remains the same and the amount paid toward the principal gradually increases . D. Installment loans gradually pay down the loan principal while the payments remain the same .Therefore, the interest due each month gradually increases and the amount paid toward the principal gradually decreases.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Explain in general terms how the portion s of loan payment going to principal and interest change over the life of the loan .
A. Installment loans gradually pay down the loan principal while the payments remain the same . Therefore , the interest due each month gradually decreases and the amount paid toward the principal gradually increases.
B. Installment loans gradually pay down the loan principal while the payments remain the same. Therefore , the interest remains the same and the amount paid toward the principal gradually decreases.
C. Installment loans gradually pay down the loan principal while the payments remain the same . Therefore , the interest remains the same and the amount paid toward the principal gradually increases .
D. Installment loans gradually pay down the loan principal while the payments remain the same .Therefore, the interest due each month gradually increases and the amount paid toward the principal gradually decreases.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
