Which of the following statements is true of amortization?

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With an amortized loan, a larger proportion of each month's payment goes toward interest in the early periods, as the principal balance is higher in the beginning. As the loan gets paid down, the interest portion of the payment decreases, and the principal portion increases. The amortization schedule shows how each payment is allocated between principal and interest. It includes both the principal and interest portions of the payment. The computation of loan amortization involves compound interest calculations.

Which of the Following Statements Is True of Amortization