Question
The payment made each period on an amortized loan is constant, and it consists of some interest and some principal. Which of the following statement
The payment made each period on an amortized loan is constant, and it consists of some interest and some principal. Which of the following statement is correct?
| 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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Accounting
Authors: Warren S. Carl
23rd Edition
0324555865, 978-0324555868
