Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.7 The Cost of Home Ownership - Exercise Set 8.7 - Page 556: 19

Answer

In each successive payment over the life of an installment loan, the portion going to interest decreases, and the portion going to principal increases.

Work Step by Step

A loan amortization schedule is a document showing how each monthly installment payment is split between interest and principal. In each successive payment over the life of an installment loan, the portion going to interest decreases and the portion going to principal increases.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.

GradeSaver will pay $15 for your literature essays
GradeSaver will pay $25 for your college application essays
GradeSaver will pay $50 for your graduate school essays – Law, Business, or Medical
GradeSaver will pay $10 for your Community Note contributions
GradeSaver will pay $500 for your Textbook Answer contributions