How do principal pre-payments remitted against a fixed-rate loan balance affect the loan?
A. By reducing the term
B. By reducing the future payment amount
C. By reducing the overall interest expense
D. By reducing the term and overall interest expense
Answer:D
How do principal pre-payments remitted against a fixed-rate loan balance affect the loan?
A. By reducing the term B. By reducing the future payment amount C. By reducing the overall interest expense D. By reducing the term and overall interest expense