As Time Increases for an Amortized Loan,the ________ Decreases

question 99

Multiple Choice

As time increases for an amortized loan,the ________ decreases.

• A)interest paid per payment
• B)principal paid per payment
• C)the outstanding loan balance
• D)both A and C
• E)all of the above

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Definitions:

Marginal Cost

The rise in cost from producing an extra unit of a good or service.

Average Total

typically pertains to the average total cost, which is calculated by dividing the total cost of production by the quantity produced.

Average Fixed

Average Fixed refers to the average fixed costs per unit of output, which decreases as the quantity of output increases because total fixed costs are spread over a larger number of units.

Average Variable

Pertains to the expenses that change in proportion to the activity of a business, averaged per unit of production or operation.