Question 9

9 How is the principal amount of an interest-only loan repaid? Multiple Choice points The principal is repaid in decreasing increments and included in each loan payment. The principal is repaid in one lump sum at the end of the loan period The principal is repaid in equal annual payments. The principal is repaid in increasing increments through regular monthly payments The principal is forgiven over the loan period; thus it does not have to be repaid