A loan that requires the borrower to make the same payment every period until the maturity date is called aA) simple loan.B) fixed-payment loan.C) discount loan.D) same-payment loan.E) none of the above.
B) fixed-payment loan
The correct answer is B) fixed-payment loan.
A fixed-payment loan is a loan where the borrower is required to make equal payments over the life of the loan. Each payment is applied first to the interest owed and then to the remaining principal amount. The payment amount is calculated based on the loan amount, interest rate, and term of the loan. Fixed-payment loans are a common type of consumer loan, such as a car loan or a mortgage.
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