Midway through the life of an amortized loan, the percentage of the payment that represents interest could be equal to, less than, or greater than to the percentage that represents repayment of principal.The proportions depend on the original life of the loan and the interest rate.

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this statement is true.the portion of the payment representing interest declines, while the portion representing principal repayment increases.the interest portion could be equal to, greater than, or less than the principal portion.We can 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 less than the principal at 10%, equal at about 41.45%, and greater at rates above 41.45%. 11ea1b84_8b7f_e852_a54a_43baf51f57f5_TB3581_00 11ea1b84_8b80_0f63_a54a_5982ef6de615_TB3581_00

Midway Through the Life of an Amortized Loan, the Percentage