Question

consider the example amortization spreadsheet for a $120,000 loan with a down payment of $10,000. the loan period is 30 years and the interest rate is 6%.
during the sixth month, the monthly payment consisted of a $609.06 payment toward interest and a dropdown payment towards principal ($547.22, $112.54).
as more payments are made, the portion of the monthly payment that goes toward interest dropdown while the portion that goes toward the principal dropdown.

Explanation:

Step1: Analyze the Amortization Table

From the given amortization table, we look at the row corresponding to the sixth month (or the relevant row for the sixth payment). The columns are for Interest Paid, Principal Paid, etc.

Step2: Identify Interest and Principal Payments

Looking at the table, for the relevant row (sixth month - we can check the rows, and the row with Interest Paid = $547.22 and Principal Paid = $112.74 matches the context. So the interest payment is $547.22 and principal is $112.74. Also, the monthly payment is the sum, but the question is about the interest and principal components during the sixth month. From the table, the interest payment is $547.22 and principal is $112.74. The first dropdown (interest) should be $547.22, and the principal dropdown should be $112.74. Also, as payments are made, the interest portion decreases (since interest is on remaining principal, which decreases) and principal portion increases.

Answer:

For the interest payment: $\boldsymbol{\$547.22}$
For the principal payment: $\boldsymbol{\$112.74}$
As more payments are made, the portion toward interest $\boldsymbol{\text{decreases}}$, and toward principal $\boldsymbol{\text{increases}}$.