What fraction of your initial loan payment is interest? What about the last payment? What fraction of the loan has been paid off after 10 years? Why is the fraction less than half?
A) 1/10; 1/10; less than half because interest accumulates
B) 1/2; 1/2; exactly half after 10 years
C) 1/10; 1/2; less than half due to principal reduction
D) 1/2; 1/10; less than half because interest accumulates