Question

amortization schedule for a 30-year mortgage
an amortization table for the first six months of a 30-year mortgage with a purchase price of $238,000 at a 4% interest rate is shown.

month	principal paid	interest paid	remaining balance
2	$289.04	$846.54	$237,422.80
3	$289.92	$845.66	$237,132.88
4	$290.81	$844.77	$236,842.07
5	$291.70	$843.88	$236,550.37
6	$292.59	$842.99	$236,257.78

use the dropdown menu to complete the sentence.
sapphire noticed that as the years pass, the amount paid toward the principal

• increases
• decreases
• remains the same
• fluctuates unpredictably

Explanation:

Step1: Analyze Principal Paid Column

Look at the "Principal Paid" values: Month 1: $288.16, Month 2: $289.04, Month 3: $289.92, Month 4: $290.81, Month 5: $291.70, Month 6: $292.59.

Step2: Determine Trend

These values are increasing over time (each month's principal paid is higher than the previous).

Answer:

increases