Which of the following best describes when negative amortization will occur
Ngày đăng:
26/12/2022
Trả lời:
0
Lượt xem:
123
Show What causes negative amortization?Negative amortization occurs when the principal amount on a loan increases gradually because the loan repayments do not cover the total amount of interest costs for the period. It occurs because borrowers are allowed to make reduced payments for a certain period within the term of the loan.
What is a negative amortization quizlet?Negative Amortization. Payments that do not fully pay the interest due on a loan and that causes an increase in the borrower's total principal debt.
Which of the following is true of a loan with negative amortization quizlet?The correct answer is B. If the loan continues in a negative amortization status, the balance of the loan will soon be significantly greater than it was at the beginning of the loan. This is because unpaid interest is accruing and is being added to the loan balance.
What is negative amortization example?For example, if the interest payment on a loan is $500, and the borrower only pays $400, then the $100 difference would be added to the loan's principal balance.
|