The amount due for principal and interest payments in a given year is known as:
A) total revenue.
B) economic profit.
C) debt service.
D) redundancy.

Question

Quizplus · Accepted Answer

Debt service refers to the amount of money required to cover the payments of principal and interest on a debt in a given year. It is a measure of the cost of borrowing, and is commonly used by lenders and borrowers when assessing the viability of a loan. Total revenue refers to the sum of all income generated by a business, economic profit refers to the difference between total revenue and total costs, and redundancy refers to the state of being no longer needed or useful. None of these terms accurately describe the amount due for principal and interest payments in a given year.

The Amount Due for Principal and Interest Payments in a Given