Which of the following statements about installment notes is correct?
A)With each subsequent payment on an installment note,the amount of interest expense decreases.
B)With each subsequent payment on an installment note,the amount of interest expense increases.
C)With each subsequent payment on an installment note,the amount of the principal paid decreases.
D)With each subsequent payment on an installment note,the amount of the principal paid remains unchanged.

Question

Quizplus · Accepted Answer

Over the term of the installment loan,the amount of the interest expense decreases each year and the amount of principal paid increases each year.

Which of the Following Statements About Installment Notes Is Correct