Question
PLEASE HELP Which of the following most accurately describes the relationship between the interest expense on a fixed-rate mortgage and the reduction of principal amount
PLEASE HELP
Which of the following most accurately describes the relationship between the interest expense on a fixed-rate mortgage and the reduction of principal amount on the mortgage? Assume a fixed installment payment.
There is a direct relationship; as the interest expense decreases, the reduction of principal amount decreases.
There is an inverse relationship; as the interest expense decreases, the reduction of principal amount increases.
There is no relationship; as the interest expense decreases, the reduction of principal amount remains the same.
There is an unpredictable relationship; as the interest expense decreases, the reduction of principal amount fluctuates unpredictably.
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