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Question

With amortized loans, such as a mortgage, which of the following statements is correct?

A Interest is always more than half of the payment amount

B Return of principal is always more than half of the payment amount

C The proportion of interest to the total decreases later in the payment schedule

D The proportion of interest to the total increases later in the payment schedule

E Principal is always less than half of the payment amount

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SIDBI Grade A (Assistant Manager)

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