FinanceCâu 74 / 100
In a fully amortized loan, over the life of the loan the portion of each payment going to interest:
a.Increases while principal decreases
b.Decreases while principal increases
c.Stays exactly the same
d.Is always zero
Giải thích
In a fully amortized loan, early payments are mostly interest because the balance is high, and over time the interest portion shrinks while the principal portion grows. The total payment stays level in a fixed-rate loan. By the end, nearly all of each payment reduces principal.
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