Finance
In South Carolina, an 'interest-only loan' means the borrower:
APays only principal for the first few years
BPays only interest for a specified period without reducing principal✓ Correct
CPays no interest in the first year
DPays interest and principal from the first payment
Explanation
During the interest-only period, the borrower's payments cover only the interest charge. No principal is repaid, so the loan balance does not decrease. After the interest-only period, payments increase.
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