As time increases for an amortized loan,the ________ decreases.
A)interest paid per payment
B)principal paid per payment
C)the outstanding loan balance
D)both A and C
E)all of the above

Question

Quizplus · Accepted Answer

As time increases for an amortized loan, the interest paid per payment decreases but the principal paid per payment remains the same. This causes the outstanding loan balance to decrease as well, making options A and C both correct. Therefore, the best choice is D - both A and C.

As Time Increases for an Amortized Loan,the ________ Decreases