Q 10.15:

Over the life of a fixed-rate mortgage with annual payments, the interest portion of each installment payment

• A :

  stays the same, but the remaining principal balance on the loan decreases.

• B :

  decreases, as does the remaining principal balance on the loan.

• C :

  increases, but the remaining principal balance on the loan decreases.

• D :

  decreases, while the remaining principal balance on the loan stays the same.