A schedule that shows how much of each payment will be applied to principal and how much toward interest over the life of the loan is called a/n:
  1. amortization schedule
  2. annual percentage rate
  3. assumption
  4. both A and C
Explanation
Answer: A. An amortization schedule is a table showing how much of each payment is applied to interest and how much to principal. It also shows the gradual decrease of the loan balance until it reaches zero.
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