MetroBank made loans to ten small companies, in amounts ranging from $1, 000 to $100, 000. These ten loans all had graduated payment plans, i. e. , the scheduled monthly loan payment increased slightly each month over the five-year term of the loan. Nonetheless, the average payment received by MetroBank for these ten loans had decreased by the end of the five-year term. Which one of the following, if true, most helps to resolve the apparent discrepancy in the statements above?
A: Of the ten small companies, the three that had borrowed the largest amounts paid off their loans within three years.
B: For some loans made by MetroBank, the monthly payment decreases slightly over the term of the loan.
C: The number of small companies receiving new loans from MetroBank increased over the five-year term.
D: Most banks offer a greater number of loans for under $100, 000 than for over $100, 000.
Choose A, B, C or D as your solution.
A