Which of the following statements is TRUE about a fully amortizing loan (i.e., one in which all payments are equal and there is no principal remaining after the last payment)?

The principal portion of later payments is greater than that of earlier payments.

The principal outstanding remains the same over the life of the loan until right before the last payment.

The interest portion of later payments is more than that of earlier payments.

The principal portion of later payments s less than that of earlier payments.