In a ten-year installment note, the portion of the periodic installment payment in the third year that represents interest is:
A) the same as in the fourth year.
B) the same as in the first year.
C) less than in the fourth year.
D) more than in the fourth year.

Question

Quizplus · Accepted Answer

Each year the portion of the payment that represents interest gets smaller as the balance declines and the interest rate remains the same.

In a Ten-Year Installment Note, the Portion of the Periodic