Finance
In Tennessee, 'amortization negative' means that a loan's principal balance:
ADecreases each month
BIncreases each month because payments don't cover the full interest✓ Correct
CRemains constant throughout the loan term
DDecreases faster than scheduled
Explanation
Negative amortization occurs when the scheduled payment is less than the interest accruing, causing the unpaid interest to be added to the loan balance. This can result in the balance growing over time.
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