Question

Installment notes payable that require periodic payments of accrued interest plus equal amounts of principal result in:

Answer 1

Answer: Periodic total payments that gradually decrease in amount

Step-by-step explanation:

When periodic payments include both accrued interest and an equal repayment of principal, the total payment will reduce overtime.

This is because as the principal is repaid, the accrued interest amount will gradually decrease because the interest is being charged on a smaller amount of principal with each payment.