Why is it important that businesses provide an amortization table for any large loan?%0D%0A%0D%0A(1 point)%0D%0AResponses%0D%0A%0D%0AIt includes every possible expense associated with a loan.%0D%0A%0D%0AIt includes every possible expense associated with a loan.%0D%0A%0D%0AThe business can use it to adjust the payments if necessary.%0D%0A%0D%0AThe business can use it to adjust the payments if necessary.%0D%0A%0D%0ALarge loans have very different legal requirements than small loans.%0D%0A%0D%0ALarge loans have very different legal requirements than small loans.%0D%0A%0D%0AIt includes much of the information lenders are legally obligated to provide.
The most important reason why businesses should provide an amortization table for any large loan is that it allows both the business and the borrower to clearly see the breakdown of payments over time. This includes the amount applied to principal and interest with each payment, as well as the total interest paid over the life of the loan. This information is crucial for budgeting and financial planning purposes, and helps ensure that both parties have a clear understanding of the terms of the loan. Additionally, having an amortization table allows the business to easily adjust payments if necessary, based on changing financial circumstances.
