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: 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.
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