CWM_LEVEL_2 practice question 4 of 35

Section A (1 Mark) With amortized loans, such as a mortgage:

Answer options

A: Interest is always more than half of the payment amount

B: Return of principal is always more than half of the payment amount

C: The proportion of interest to the total decreases later in the payment schedule Correct answer

D: The proportion of interest to the total increases later in the payment schedule.

Correct Answer:

C. The proportion of interest to the total decreases later in the payment schedule

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