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Negative amortization means that even when you make payments; a) The amount you owe goes down. b) You do not pay enough money to cover

Negative amortization means that even when you make payments;

a) The amount you owe goes down.

b) You do not pay enough money to cover full interest and it keeps adding to the principle.

1.

a is false and b is true.

2.

Both a and b are true.

3.

Both a and b are false.

4.

a is true and b is false.

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