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If a loan has a 10-year amortization period with a fixed interest rate, will the interest...

  1. If a loan has a 10-year amortization period with a fixed interest rate, will the interest paid in the eighth year be equal to the interest paid in the fifth year?
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Answer #1

No, with the amortisation period of loan, the principle amount of loan will be reduced. So the interest paid in the eighth year will not be equal to the interest paid in the fifth year.

Example: Loan amount = $ 100,000

Amortization period = 10 years (Starts from Jan 2020)

Fixed Interest rate = 5%

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