Midway Through the Life of an Amortized Loan, the Percentage

question 68

True/False

Midway through the life of an amortized loan, the percentage of the payment that represents interest must be equal to the percentage that represents repayment of principal.This is true regardless of the original life of the loan or the interest rate on the loan.

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Definitions:

Short-Term Memory

The ability to keep a limited amount of data actively available in one's consciousness for a brief duration.

Short-Term

Relating to or occurring over a short period of time; often used in the context of memory to describe information held temporarily for processing.

Trace

A very small amount or indication of something.

Sensory

Relating to or involving the senses or sensation, including the reception and processing of information through sight, sound, touch, taste, and smell.