An electric device delivers a current of [tex]$15.0 A$[/tex] for 30 seconds. How many electrons flow through it?
Answer (1)
The payment amount remains constant each month.
The amount applied to the principal increases each month.
The amount applied to interest decreases each month.
Therefore, the true statement is: The amount applied to the principal is increasing each month. $\boxed{c}
Explanation
Understanding the Problem We are given an amortization table and asked to determine which of the given statements is true based on the information in the table.
Analyzing the Statements Let's analyze each statement: a. The payment amount changes each month. Looking at the 'Payment' column, we see that the payment amount is consistently $387.58 each month. So, this statement is false. b. The amount applied to the principal is decreasing each month. Looking at the 'Principal' column, we see the amounts are: $325.82, $328.19, $330.57, $332.97, $335.38, $337.82, $340.27. These amounts are increasing, so this statement is false. c. The amount applied to the principal is increasing each month. As we saw in the analysis of statement b, the amount applied to the principal is indeed increasing each month. So, this statement is true. d. The amount applied to interest is increasing each month. Looking at the 'Interest' column, we see the amounts are: $61.76, $59.39, $57.01, $54.61, $52.19, $49.76, $47.31. These amounts are decreasing, so this statement is false.
Conclusion Based on our analysis, the correct statement is that the amount applied to the principal is increasing each month.
Examples
Understanding amortization schedules is crucial in personal finance. For example, when you take out a loan to buy a car or a house, the amortization schedule shows how much of each payment goes towards the principal and how much goes towards interest. By understanding this, you can see how quickly you are paying off the loan and how much interest you are paying over the life of the loan. This knowledge can help you make informed decisions about refinancing or making extra payments to reduce the total cost of the loan.
