Compounding interest rates mean you earn interest on _______________.

Group of answer choices

original principal only

interest only

original principal and interest

Which of the following is correct regarding an amortized loan with monthly payments?

Group of answer choices

The proportion of the monthly payment that goes toward interest will steadily decrease over time.

The interest rate will steadily decrease over time.

The dollar amount of interest in each payment stays the same over time.

The amount of the monthly payment will steadily decrease over time.

The loan balance of an amortized loan is the __________ of the remaining payments.

Group of answer choices

Future value

Sum

Present value

Other things being equal, how should the amount of each payment in an amortized loan be affected if you borrow less?

Group of answer choices

Increase.

Decrease.

No change.