College Readiness Lesson 8.6

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

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

• always the same

• always different

• sometimes the same

• never the same

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

Dr. Drake is thinking about retirement and decides to sail around the world once he retires. He buys a sailboat for $150,000. He borrows the money at an APR of 7.5% for five years. What will his monthly payment be?

• $20.04
• $100.20
• $3,008
• $750

What is the monthly payment for a $4,600 two-year loan with an APR of 8.25%?

• $208.56

• $211.43

• $282.14

• $272.85