When a Loan Is Amortized, a Relatively Low Percentage of the Payment

question 38

True/False

When a loan is amortized, a relatively low percentage of the payment goes to reduce the outstanding principal in the early years, and the principal repayment's percentage increases in the loan's later years.

---

Definitions:

Renal Failure

A condition where the kidneys lose the ability to filter waste and excess fluids from the blood.

Cystitis

An inflammation of the bladder, often caused by a bacterial infection.

Indwelling Urinary Catheter

A tube inserted into the bladder through the urethra to drain urine, remaining in place for extended periods.

Erythropoietin

A hormone produced by the kidneys that stimulates the production of red blood cells in response to falling levels of oxygen in the tissues.