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When partial payments (more than one payment) are made to reduce a loan, each payment amount is first used to reduce the interest on the

When partial payments (more than one payment) are made to reduce a loan, each payment amount is first used to reduce the interest on the loan and the remainder is used to reduce the amount of principal. This is known as:

a.

None of the options

b.

Promissory loan

c.

Declining balance method

d.

Demand loan

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