Question
The payment made each period on an amortized loan is constant, and it consists of interest and principal. Which of the following statements is correct?
The payment made each period on an amortized loan is constant, and it consists of interest and principal. Which of the following statements is correct?
Group of answer choices
The closer we are to the end of the loan's life, the smaller the percentage of the payment that will be a repayment of interest.
The closer we are to the beginning of the loan's life, the smaller the percentage of the payment that will be a repayment of interest.
The closer we are to the beginning of the loan's life, the greater the percentage of the payment that will be a repayment of principal.
The closer we are to the beginning of the loan's life, the greater the percentage of the payment that will be a repayment of principal.
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Shape Up Your Finances The Personal Finances Handbook
Authors: Ian Birt
1st Edition
0734608268, 978-0734608260
