Which of the following characteristics is not descriptive of an amortization schedule?
A)each payment is the same.
B)The same dollar amount of interest is paid with each payment.
C)payment on principal increases with each total payment.
D)balance owed is reduced by each payment.

Question

Quizplus · Accepted Answer

An amortization schedule shows how a loan is paid off over time, with each payment consisting of both principal and interest. However, the amount of interest paid with each payment will vary as the balance owed decreases. Therefore, B is not descriptive of an amortization schedule.

Which of the Following Characteristics Is Not Descriptive of an Amortization