Why is it important that businesses provide an amortization table for any large loan?
A. • It includes every possible expense associated with a loan.
B. • The business can use it to adjust the payments if necessary.
C. • Large loans have very different legal requirements than small loans.
D. • It includes much of the information lenders are legally obligated to provide.
B. The business can use it to adjust the payments if necessary.
An amortization table breaks down each payment to show how much is going towards principal and how much is going towards interest. This information can be helpful for businesses to understand how the loan will be paid off over time and make any necessary adjustments to payment schedules if their financial situation changes. Additionally, it can also help businesses in budgeting and planning for future financial obligations.