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.

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Definitions:

Hyperpolarization

A change in a cell's membrane potential that makes it more negative, usually making it less likely to fire an action potential.

Resting Potential

The difference in electric charge between the inside and outside of a neuron's cell membrane when the neuron is not actively transmitting a signal.

Depolarization

The process in which the difference in electrical charge across a cell membrane decreases, often leading to the initiation of an electrical signal.

Positively Charged

Having a net electrical charge due to the loss of electrons, often pertains to ions or particles.