An amortized loan is generally structured to provide constant payments each of which contains the same proportions of interest and principal repayment.

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In an amortized loan, the payments are structured so that the amount of the payment going towards interest decreases over time, while the amount going towards the principal increases. This means that the proportions of interest and principal repayment in each payment are not constant.

An Amortized Loan Is Generally Structured to Provide Constant Payments