Each payment made on a long-term note payable usually consists of both interest and principal

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Each payment made on a long-term note payable is composed of both interest and principal. The amount allocated to each will depend on the terms of the loan agreement. Typically, the majority of the payment at the beginning of the loan period goes towards interest, while towards the end of the repayment period, more of the payment is allocated towards the principal.

Each Payment Made on a Long-Term Note Payable Usually Consists