When repaying an amortized loan, the interest payments increase over time due to the compounding process. Group of answer choices True False

Respuesta :

Zviko

Answer:

False

Explanation:

The larger part of the first payments of a loan are usually dedicated to payment of interest. Then in the later years this changes as the interest will  decrease and most payments are dedicated to repayment of the principle amount. Therefore, when repaying an amortized loan, the interest payments do not increase over time due to the compounding process.