Answer:
False
Explanation:
The percentage of repayment of loan might be different from the percentage in interest and it is not depending on the original life and interest rate of the loan. E.g. A loan of $500,000 @ 10% amortized over 5 years time.
Year Balance Payment Interest @ 10% Principal payment
1 500,000 150,000 50,000 100,000
2 400,000 150,000 40,000 110,000
3 290,000 150,000 29,000 121,000
4 169,000 150,000 16,900 133,100
5 35900 39490 3590 3590
In each year the percentage of principal paid is not eaquat to percentage of principal paid.
