Based upon the simple interest rate method of a fixed interest rate installment loan or mortgage, successive monthly loan payments over time   a. pay the same percentage to interest and principal.   b. pay increasing percentages to interest and decreasing percentages to principal.   c. pay increasing percentages to principal and decreasing percentages to interest.   d. pay decreasing percentages to interest and principal.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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Chapter7: Using Consumer Loans
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Based upon the simple interest rate method of a fixed interest rate installment loan or mortgage, successive monthly loan payments over time

  a.

pay the same percentage to interest and principal.

  b.

pay increasing percentages to interest and decreasing percentages to principal.

  c.

pay increasing percentages to principal and decreasing percentages to interest.

  d.

pay decreasing percentages to interest and principal.

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