Mortgages and Amortization

A _____ is probably the biggest loan one can have

• Mortgages

• Loan

• Credit

• Amortization

_________ is when you use your property as collateral for a loan from a financial institution.

• Mortgage Loan

• Mortgage Payment

• Amortization Loan

• Amortization Payment

Tags

CCSS.HSA.SSE.B.4

For most installment purchases, a ______________ is generally required. It is usually a certain percent of the purchase price.

• Down payment

• Monthly payment

• Start up payment

• Initial payment

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3

Which of the following best describe the buyer's equity?

• Down payment

• Monthly payment

• Amortization payment

• Whole payment

The installment payment on the loan is termed____________.

• Down payment

• Mortgages

• Amortization

• Buyer's equity

The schedule prepared showing the installment payments for the period (called the term of the loan) is called___________.

• Amortization Table

• Payment Method Table

• Installment Payment Table

• Mortgages Table

Tags

CCSS.HSA.SSE.B.4

Which of the following is the correct formula in finding the monthly payment?

•  $$A=\frac{ixPx{\left(1+i\right)}^2}{{\left(1+i\right)}^n-1}$$ 

•  $A=\frac{i\ x\ P\ x\ \left(1+i\right)^n}{\left(1+i\right)^2}$ 

•  $A=\ \frac{i\ x\ P\ x\ \left(1+i\right)^n}{\left(1+i\right)^n-1}$  

•  $A=\ \frac{i\ x\ P\ x\ \left(1+i\right)^i}{\left(1+i\right)^n-1}$  

An ____________________ is a table or chart showing each monthly payment on an amortizing loan indicating how much of each payment goes to interest and how much goes to principal.

• Amortization schedule

• Amortization table

• Mortgage schedule

• Mortgage table

What is the relationship of interest and principal in amortization schedule?

• Directly proportional

• Indirectly proportional

• Joint proportional

• Partitive proportion

Tags

CCSS.HSA.SSE.A.1

CCSS.HSA.SSE.B.4

Which of the following statement is not true about amortization?

• Even though the monthly payment is fixed, the amount of money paid to interest and principal varies each month.

• As the amount that goes to interest decrease as payment is made, the amount that goes to the principal increase.

• An amortization schedule is a table or chart showing each monthly payment

• The relation ship of monthly payment to principal and interest is directly proportional.