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Southern Minnesota | Payments on an amortization schedule are front loaded with interest costs so any payments on financed purchases made in the last few years show up higher as interest expense along with little increase in equity due to the low amount applied to principal.
Payments made years 15-20 on a 20 year note have a very small amount applied to interest. It's all front loaded. Thus on a P & L the same payment amount will make the balance sheet look better as time goes on. | |
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Interest to high???
