The payment pattern for an installment note with accrued interest plus equal amounts of principal includes
A)Increasing total payments
B)Increasing accrued interest
C)Constant principal payments
D)Constant interest payments
E)Equal periodic payments

Question

Quizplus · Accepted Answer

Constant principal payments are a characteristic of an installment note with accrued interest plus equal amounts of principal. This means that the principal portion of the payment remains the same throughout the term of the loan, while the total payment decreases over time as the interest portion decreases.

The Payment Pattern for an Installment Note with Accrued Interest