A $40,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of the following statements is CORRECT?单项选择题

A

A. The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower.

B

B. If the loan were amortized over 9 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7-year amortization plan.

C

C. The annual payments would be larger if the interest rate were lower.

D

D. The last payment would have a higher proportion of interest than the first payment.

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