Which of the following statements is $($are$)$ true about a loan paid back using the

amortization method?

I. The amount of interest paid decreases with each payment, according to a geometric

progression.

II$.$ Using the retrospective method, the outstanding loan balance at any time is equal to

the loan amount minus the accumulated value of the payments made up to that time.

III. The total interest paid is equal to the sum of the principal repaid payments minus the

loan amount.

Possible Answers

I only

II only

II and III only

None of I, II or III

The correct answer is not given by $($A$),($B$),($C$),$ or $($D$)$