Amortization QUIZ

An amortization payment is made up of what two parts?

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

The fixed payment for a mortgage is $1297.20. The original balance is $200,000. If the interest payment was $1123.06 and the principal payment was $174.14, what is the new balance on the loan?

• $1297.20

• $199,825.86

• $198,876.94

• $1123.06

Tags

CCSS.7.EE.B.3

In your fixed payment, in an amortization loan, the amount of PRINCIPAL you pay decreases during the life of the loan

• True
• False
• non answer
• non answer

In your Fixed Payment, in an amortization loan, the amount of INTEREST you pay decreases during the life of the loan

• True
• False
• non answer
• non answer

Find the Principal amount:  The fixed payment is $250.50, the interest payment is $6.75.

• $243.75
• $257.25
• $250.50
• $6.75

Tags

CCSS.7.RP.A.3

Find the interest amount:  The fixed payment is $375.90, the principal amount is $260.19.

• $636.09
• $375.90
• $260.19
• $115.71

Tags

CCSS.7.RP.A.3

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