Which of the Following Statements Is True of Amortization

question 72

Multiple Choice

Which of the following statements is true of amortization?

• A) With an amortized loan, a bigger proportion of each month's payment goes toward interest in the early periods.
• B) With an amortized loan, a bigger proportion of each month's payment goes toward interest in the later periods.
• C) With an amortized loan, a smaller proportion of each month's payment goes toward interest in the early periods.
• D) With an amortized loan, the interest portion of each month's payment remains unchanged.

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