The difference between simple interest and compound interest is that in simple interest, interest is charged only on the principal amount of the loan, whereas in compound interest, interest is charged on both the principal amount and any accumulated interest from previous periods.
In other words, compound interest leads to the growth of the loan amount over time, whereas simple interest does not. Therefore, for a bank loan that will not be paid down for an extended period, compound interest payments would be more likely to increase the amount of the loan than to decrease it, remain stable in amount, or remain stable in frequency.
Therefore, the answer is A. increase in amount.