If you had a fixed-payment loan of $500,000 for thirty years at 6%, how much of your payment is principal in year 10?

Question

Quizplus · Accepted Answer

In a fixed-payment loan, each payment includes both interest and principal. By year 10, a portion of each payment is allocated to the principal. The exact amount can be calculated using an amortization schedule, and $520.60 is the correct amount of principal paid in year 10.

If You Had a Fixed-Payment Loan of $500,000 for Thirty