Amortization Table Assessment

A _____ is probably the biggest loan one can have

• Mortgages

• Loan

• Credit

• Amortization

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

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

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

• undefined

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

6b. Natalie and Andrew Prior are examining their payment schedule for their $280,000 mortgage. The mortgage was for 15 years and had an APR of 3.375%. What is the ending balance after the 180^th payment?

• $0

• $1,978.96

• $512.33

• $294.67

6a. Natalie and Andrew Prior are examining their payment schedule for their $280,000 mortgage. The mortgage was for 15 years and had an APR of 3.375%. What was the Prior’s monthly mortgage payment?

• $2,023.26

• $1,984.53

• $1,742.15

• $1,880.72

What is amortization?

• The process of paying off a debt through irregular payments that only include interest.

• The process of paying off a debt in a lump sum at the end of a fixed period of time.

• The process of gradually reducing or paying off a debt over a fixed period of time through regular payments that include both principal and interest.

• The process of increasing or adding to a debt over a fixed period of time through regular payments that include both principal and interest.

What is principal reduction?

• Increase in the outstanding balance of a loan or debt.

• The process of adding interest to a loan or debt.

• Decrease in the outstanding balance of a loan or debt.

• The act of transferring a loan or debt to another party.