In each succeeding payment on an installment note:
A)The amount of interest paid increases.
B)The amount of principal paid increases.
C)The amount of interest paid is unchanged.
D)The amounts paid for both interest and principal increase proportionately.

Question

Quizplus · Accepted Answer

The amount of principal paid increases because the interest is calculated on the remaining balance of the loan, which decreases with each payment.

In Each Succeeding Payment on an Installment Note