The first interest payment on a 5-year,8%,$100,000,fully-amortized loan with annual payments will be less than the last interest payment.

Name: The first interest payment on a 5-year,8%,$100,000,fully-amortized loan with annual payments will be less than the last interest payment.
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Question

Quizplus · Accepted Answer

The interest portion of each payment decreases over time as the loan is paid off, so the first interest payment will be higher than the last interest payment.

The First Interest Payment on a 5-Year,8%,$100,000,fully-Amortized Loan with Annual