FinanceCâu 73 / 120
In an amortized loan, the early payments are applied:
a.Mostly to interest, with a small portion to principal
b.Entirely to principal
c.Entirely to property taxes
d.Mostly to principal, with a small portion to interest
Giải thích
In a standard amortizing loan, early payments are weighted heavily toward interest because the outstanding balance is high. As the balance declines, more of each payment goes toward principal.
Luyện miễn phí toàn bộ 120 câu hỏi — không cần đăng ký.
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