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Which One of the Following Statements Is NOT True About

Question 42

Multiple Choice

Which one of the following statements is NOT true about amortisation?


A) Amortisation refers to the way the borrowed amount (principal) is paid down over the life of the loan.
B) With an amortised loan, each loan payment contains some payment of principal and an interest payment.
C) With an amortised loan, a smaller proportion of each month's payment goes toward interest in the early periods.
D) A loan amortisation schedule is just a table that shows the loan balance at the beginning and end of each period, the payment made during that period, and how much of that payment represents interest and how much represents repayment of principal.

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