The interest paid on an amortized loan decreases with each payment.

Name: The interest paid on an amortized loan decreases with each payment.
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This is because with an amortized loan, a portion of each payment goes towards paying off the principal balance, which means less interest accrues on the remaining balance over time. As the remaining balance decreases, so does the amount of interest charged.

The Interest Paid on an Amortized Loan Decreases with Each