In each succeeding payment on an installment note:
A)The amount of interest expense increases.
B)The amount of interest expense decreases.
C)The amount of interest expense is unchanged.
D)The amounts paid for both interest and principal increase proportionately.

Question

Quizplus · Accepted Answer

In an installment note, as the principal balance decreases with each payment, the interest expense, which is calculated on the remaining principal, also decreases.

In Each Succeeding Payment on an Installment Note