a loan is structured to pay back higher portions of interest first and gradually increase principal…

a loan is structured to pay back higher portions of interest first and gradually increase principal payments. this benefits the ... lender borrower why is a loan is structured to pay back higher portions of interest first and gradually increase principal payments? the bank collects principal on the interest it really doesnt impact the borrower it doesnt impact the lender the bank collects interest on principal so they want the principal to last as long as possible

a loan is structured to pay back higher portions of interest first and gradually increase principal payments. this benefits the ... lender borrower why is a loan is structured to pay back higher portions of interest first and gradually increase principal payments? the bank collects principal on the interest it really doesnt impact the borrower it doesnt impact the lender the bank collects interest on principal so they want the principal to last as long as possible

Answer

Brief Explanations:

When a loan is structured to pay higher - interest portions first and gradually increase principal payments, the lender benefits because they earn more interest over the life of the loan. Lenders collect interest on the principal, so they want the principal to remain outstanding for as long as possible to maximize their interest income.

Answer:

A. lender D. the bank collects interest on principal so they want the principal to last as long as possible