9) You have a choice among three types of loan and wish to pay the LEAST total cash flows. An amortized loan will result in fewer dollars paid out than a discount or an interest-only loan for the same amount, positive interest rate, and time period.
10) The first interest payment on a 5-year, 8%, $100,000, fully-amortized loan with annual payments will be less than the last interest payment.
11) The last interest payment on a 12-year, 6%, $138,000, fully-amortized loan with annual payments will be less than the first interest payment.
12) Once you begin making payments on an amortization schedule for a loan such as a mortgage or car loan, most contracts clearly state that you may NOT pay off the loan early.