Loan Payments

Find the simple interest payable on a loan of $7500 at 9% p.a. for 2 years

• $1350.00
• $8850.00
• $675.00
• $7500.00

Express 14.6% per annum as a decimal

• 0.146
• 0.14
• 1.46
• 0.0146

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

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

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

• interest

• the principal balance

• loan term

• interest rate

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