Every fixed monthly payment on a car loan contains some interest and a…

Question

Every fixed monthly payment on a car loan contains some interest and also some:

Accepted Answer

B. Principal repayment

1. Interest alone would never reduce what is owed.
2. Part of each payment has to cut into the borrowed sum.
3. So each payment carries principal repayment too.
_Source: OpenStax Principles of Finance 2e, Chapter 8, Time Value of Money II._

Answer

Personal allowance

Answer

Property insurance

Answer

Purchase commission

Every fixed monthly payment on a car loan contains some interest and also some:

Keep practising Time Value of Money