The following table shows a portion of a three-year amortization schedule.
3 year amortization schedule
loan amount or principal $ 12.240.00
interest rate on loan
8.71%
extra payment to principal $
month payment principal interest balance
13 s 387.58 s
325.82 $ 61.76 $ 8.182.71 |
14 $ 387.58 s 328.19 5 9.39s 7.854.52
i 15 s 387 58 $ 330.57s 57.01 $ 7.523.95
16 s 387.58 s 332.97s 54.61s 7.190.99
387.58s 335.38 s 52.19 $ 6.855.60
18 s 387.58s
337.82s 49.76s 6.517.78
19 s 387.58 s 340.27 s 47 31 6.177 51
use the information in the table to decide which of the following statements is true,
a. the payment amount changes each month
b. the amount applied to the principal is decreasing each month.
c. the amount applied to the principal is increasing each month.
d. the amount applied to interest is increasing each month.