With fixed principal payments on a long-term note payable, the interest portion decreases each period.

Name: With fixed principal payments on a long-term note payable, the interest portion decreases each period.
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Quizplus · Accepted Answer

This is because the interest is calculated based on the outstanding principal balance, which decreases with each principal payment. As the outstanding balance decreases, the interest portion of the payment also decreases.

With Fixed Principal Payments on a Long-Term Note Payable, the Interest