When an Installment Note Is Structured as a "Fully Amortizing

Multiple Choice

When an installment note is structured as a "fully amortizing" loan with equal monthly payments (such as a traditional mortgage) :

A) The portion of each payment allocated to interest expense is the same each month.
B) The sum of the monthly payments is equal to the amount of the installment note (mortgage) .
C) The difference between the sum of all monthly payments and the principal amount of the note constitutes interest.
D) The portion of each payment allocated to repayment of principal decreases each month as the mortgage is paid off.