Given 5 and 30 year loans with the same interest rate, the 30 year loan results in more of each payment being directed toward principal.
A)True
B)False

Name: Given 5 and 30 year loans with the same interest rate, the 30 year loan results in more of each payment being directed toward principal. A)True B)False
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Question

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With a 30-year loan, a smaller portion of each payment goes towards the principal, and a larger portion goes towards interest, especially in the early years of the loan, compared to a 5-year loan.

Given 5 and 30 Year Loans with the Same Interest