The payment pattern for installment notes that consists of accrued interest plus equal amounts of principal yields cash flows of equal amounts over the life of the note.

Name: The payment pattern for installment notes that consists of accrued interest plus equal amounts of principal yields cash flows of equal amounts over the life of the note.
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In an installment note, the principal portion of the payment increases over time while the interest portion decreases, resulting in varying cash flow amounts.

The Payment Pattern for Installment Notes That Consists of Accrued