Finance
An 'interest-only loan' in NC means the borrower's monthly payment:
AReduces the principal balance each month
BCovers only the interest portion with no reduction in principal✓ Correct
CAlternates between interest-only and principal-reduction months
DIs fixed throughout the loan term and includes principal
Explanation
With an interest-only loan, the monthly payment covers only the interest — no principal is repaid. The full original balance remains due at the end of the interest-only period.
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