A portion of loan payments goes toward covering the interest due on the loan, while the rest reduces the loan's balance. Early in a loan's Wife, its balance is high and a substantial portion goes toward interest, but over time the balance dedines, as does the portion paid toward interest. An amortization schedule illustrates how interest is covered and principal repaid by loan payments over time. You have secured an 8%, $500,000 bank loan to be paid off in seven equal end-of-year annual payments. What is the required loan payment? Loan Payment