Task: Instance Description Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes the instance 'fixed rate'?

A. a loan for which there are periodic payments/rate changes with additional specified principal and interest changes as documented in the Security Instruments.
B. a flexible payment loan where the payments increase for a specified period of time and then level off
C. a loan with fixed periodic payment/rate changes without subsidy or negative amortization.
D. a loan in which the interest rate and payments remain the same for the life of the loan

Answer: a loan in which the interest rate and payments remain the same for the life of the loan