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

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There is no reason to think that this statement would always be true.The portion of the payment representing interest declines, while the portion representing principal repayment increases.Therefore, the statement is f.We could also work out some numbers to prove this pointrue.Here's an example for a 3-year loan at a 10% and a 41.45% annual interest rate.The interest component is not equal to the principal repayment component except at the high interest rate. 11ea1b84_8b7f_c140_a54a_b13797bdc0b7_TB3581_00 11ea1b84_8b7f_e851_a54a_af9af8c24d37_TB3581_00

Midway Through the Life of an Amortized Loan, the Percentage