In general, with an amortized loan, the payment amount remains constant over the life of the loan, the principal portion of each payment grows over the life of the loan, and the interest portion of each payment declines over the life of the loan.

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This is the basic concept of an amortized loan. Each payment is divided between principal and interest, and while the total payment amount stays the same, the proportion of each payment allocated to principal and interest changes over time.

In General, with an Amortized Loan, the Payment Amount Remains