The 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 true because as the remaining balance on the loan decreases, less interest accrues each period and more of the payment is applied towards paying down the principal.

The Payment Made Each Period on an Amortized Loan Is