While each payment of an installment note is the same amount,which of the following statements is true?

Question

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Each payment of an installment note is composed of both interest and principal. At the beginning of the loan, the outstanding principal balance is high, hence the interest component of the payment will be higher. As the loan matures, the outstanding principal balance reduces, and the interest component of the payment decreases while the principal component increases. Therefore, the first payments will cover more interest expense than the later payments.

While Each Payment of an Installment Note Is the Same