Midway through the life of an amortized loan,the percentage of the payment that represents interest is equal to the percentage that represents principal repayment.This is true regardless of the original life of the loan.

Question

Quizplus · Accepted Answer

In an amortized loan, the interest portion of the payment decreases over time, while the principal portion increases. This means that midway through the life of the loan, the payment is not equally divided between interest and principal; rather, more of the payment is applied towards the principal than at the beginning of the loan.

Midway Through the Life of an Amortized Loan,the Percentage of the Payment