payment made each period on an amortized loan is constant, and it consists of some interest and some principal.The closer we are to the end of the loan's life, the greater the percentage of the payment that will be a repayment of principal.

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This is the basic principle of amortized loans. As each payment is made, the amount of interest paid decreases and the amount of principal paid increases, resulting in a greater percentage of the payment going towards repayment of the principal towards the end of the loan term.

Payment Made Each Period on an Amortized Loan Is Constant