Question

Please select the False statement for an amortized loan:

		It is a type of loan that requires the borrower to make scheduled, periodic, flat payments.
		The portion of the payment that goes towards interest increases over time.
		The portion of the payment that goes towards the principal increases over time.
		The ending balance of a period is the beginning balance minus the payment made to the principal in that year

Answer 1

The below statement is false for an amortized loan

The portion of the payment that goes towars interest increases over time - False

The portion of interest decreases over time since outstanding balance over time decreases

It is a type of loan that requires the borrower to make scheduled, periodic, flat payments - True

The portion of the payment that goes towards the principal increases over time. - True

The ending balance of a period is the beginning balance minus the payment made to the principal in that year - True