Why do customers save money if they pay off a closed ended loan faster than the amortization table requires?%0D%0A%0D%0A(1 point)%0D%0AResponses%0D%0A%0D%0ACustomers can renegotiate the terms of the loan any time.%0D%0A%0D%0ACustomers can renegotiate the terms of the loan any time.%0D%0A%0D%0AIt does not since the terms of the loan are defined in the table.%0D%0A%0D%0AIt does not since the terms of the loan are defined in the table.%0D%0A%0D%0APaying more of the principal reduces the amount of interest due.%0D%0A%0D%0APaying more of the principal reduces the amount of interest due.%0D%0A%0D%0AA closed ended loan has standard payments that include the principal.
Paying more of the principal reduces the amount of interest due. By paying off a closed ended loan faster, customers can save money on interest payments and potentially pay off the loan sooner, reducing the overall cost of the loan.
