Q338
A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as
A.
amortized loan
AnswerB.
depreciated loan
C.
appreciated loan
D.
repaid payments
Answer: Option A
Solution
Answer: Option A
Solution:
A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as amortized loan. An amortized loan is a loan with scheduled periodic payments that are applied to both principal and interest.