Assume Mike borrows $15,000 for 5 years with equal annual repayments. If the interest rate on the actual loan turns out to be higher than you anticipated, then the: annual payments will be higher than you anticipated. anticipated amortization schedule will still apply as the loan is still a 5-year loan. total principal repaid will be less than anticipated. loan will still have a balance due at the end of the 5-year amortization period. first annual payment will repay more of the principal than anticipated