The following table shows a portion of a three-year amortization schedule.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.
Accepted Solution
A:
Answer:Option C is correct.Step-by-step explanation:If we look at the table,The amount of Principal of Month 13 is $325.82The amount of Principal of Month 14 is $328.19The amount of Principal of Month 15 is $330.57So, the amount of principal is increasing every month.Rest of the options seems incorrect.So, Option C The amount applied to the principal is increasing each month.is correct.