The effective-interest method of amortization results in changing amounts of amortization and interest expense per period but at a constant interest rate.

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The effective-interest method of amortization uses a constant interest rate but the amount of amortization and interest expense changes each period. This is because the book value of the asset being amortized decreases over time, resulting in a smaller amount of interest being calculated each period, and a larger amount of the payment going towards reducing the book value through amortization.

The Effective-Interest Method of Amortization Results in Changing Amounts of Amortization