The Math of Loans: Amortization Practice

An amortization payment is made up of what two parts?

• Interest and Principal
• Interest and Payment Amount
• Payment amount and Principal
• Percent and Interest

Amortization is the paying off of debt with a ____________________ repayment schedule in regular installments over a period of time for example with a mortgage or a car loan.

• fixed

• variable

• differentiated

• fluctuating

A portion of each payment is for interest while the remaining amount is applied towards the __________________________ balance.

• principal

• interest

• interest rate

• loan term

Tags

CCSS.7.RP.A.3

Initially, a large portion of each payment is devoted to __________________________.

• interest

• the principal balance

• loan term

• interest rate

Tags

CCSS.HSA.CED.A.2

CCSS.HSA.SSE.A.1

CCSS.HSF.IF.B.4

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

As the loan matures, larger portions go towards paying down the ___________________________.

• principal balance

• interest

• interest rate

• loan term

If you have an amortized loan, your monthly payment will be______________________________.

• always the same

• always different

• sometimes the same

• never the same

gradual payment of a loan,in full,by making regular payments over time of principal and interest so there is a $0 balance at the end of the term.

• amortization
• simple interest
• Rule of 72
• round up account

The Booth Family is buying a home for $300,000. The bank is requiring a down payment of 20% of the total cost. They obtain a 30-year mortgage at 4.2% interest rate for the home.What is your down payment amount?

• $60,000
• $12,600
• $6,000
• $1,260

Tags

CCSS.6.RP.A.3C

Determine the monthly amortization payments of the 30 year loan amount of $240,000 at a interest rate of 4.2%.

• $1,173.64
• $670.89
• $333.64
• $10,080

The cost of borrowed money, usually expressed as a percentage.

• interest
• savings plan
• scarce
• purchase

Tags

CCSS.7.RP.A.3