BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Interest and Principal
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Interest and Payment Amount
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Payment amount and Principal
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Percent and Interest
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Detailed explanation-1: -An amortized loan is a type of loan that requires the borrower to make scheduled, periodic payments that are applied to both the principal and interest. An amortized loan payment first pays off the interest expense for the period; any remaining amount is put towards reducing the principal amount.
Detailed explanation-2: -These payments are also called installments. Each installment of an amortizing loan is made up of two parts: Principal: how much you owe on your loan. Interest: the extra money your lender charges so that it can earn a profit on the loan.
Detailed explanation-3: -Amortization refers to the process of paying off a debt through scheduled, pre-determined installments that include principal and interest. In almost every area where the term amortization is applicable, the payments are made in the form of principal and interest.