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      Question

      The repayment of a term loan in equal monthly

      installments consisting of both principal and interest is called:
      A Revolving Credit Correct Answer Incorrect Answer
      B Bullet Repayment Correct Answer Incorrect Answer
      C EMI Correct Answer Incorrect Answer
      D Line of Credit Correct Answer Incorrect Answer
      E Prepayment Correct Answer Incorrect Answer

      Solution

      Equated Monthly Installment (EMI) includes both interest and principal in a fixed payment schedule.

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