You decide to borrow $28,000 to put in a new swimming pool. You obtain an interest-bearing loan for 30 years, making equal monthly payments. After how many years will the greatest amount of your payment be going toward principal?

Question

a. 5 years
b. 29 years
c. 1 year
d. 25 years

Answer 1

clearly, toward the end of the loan.
In the beginning, most of each payment is interest.