BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Typically, the monthly payment remains the same, and it’s divided among interest costs (what your lender gets paid for the loan), reducing your loan balance (also known as “paying off the loan principal"), and other expenses like property taxes.

Detailed explanation-2: -At the beginning of an amortized loan’s term, more of your payment goes to paying off the interest. Later on, your fixed monthly payment will almost entirely go toward paying off the principal loan amount until the balance is paid in full.

Detailed explanation-3: -An amortized loan is a form of financing that is paid off over a set period of time. Under this type of repayment structure, the borrower makes the same payment throughout the loan term, with the first portion of the payment going toward interest and the remaining amount paid against the outstanding loan principal.

Detailed explanation-4: -Amortization is paying off a debt over time in equal installments. Part of each payment goes toward the loan principal, and part goes toward interest. As the loan amortizes, the amount going toward principal starts out small, and gradually grows larger month by month.