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Which of the following is true when making payments on a loan over time (loan amortization)? A. The amount of the payment that services interest
Which of the following is true when making payments on a loan over time (loan amortization)?
A. | The amount of the payment that services interest decreases over time | |
B. | The amount of the payment that goes towards interest is always equal to the amount that pays down principal | |
C. | The amount of the payment that pays down the principal increases over time | |
D. | Equity is built up faster during the early years of the loan |
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