Remain constant in order to use annuity formula

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Reference no: EM131891543

1. Which of the following must remain constant in order to use the annuity formula?

a. Interest rate

b. Payment

c. Time between payments

d. All of the above

2. In an amortization schedule for a six-year loan with equal annual principal repayments,__.

a. less than half of the loan would be repaid at the end of year three

b. the annual payment stays the same

c. amount of principal repaid decreases each year

d. the annual payments are higher in the earlier years

Reference no: EM131891543

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