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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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