Amortization Schedule Quiz

What does an amortization schedule primarily show?

• The total cost of a house

• The breakdown of mortgage payments into principal and interest

• The credit score required for a mortgage

• The best time to refinance a mortgage

If a house is purchased for $240,000 with a $40,000 down payment, what is the mortgage amount?

• $240,000

• $200,000

• $40,000

• $280,000

What is the monthly payment for a $200,000 mortgage at 9% interest over 30 years?

• $1,700.00

• $1,800.00

• $1,500.00

• $1,609.25

What is the first step in creating an amortization table?

• Calculate the total loan amount

• Calculate the new principal amount

• Calculate the interest amount for each month

• Calculate the monthly payment

How many columns are there in the amortization table described?

• Five

• Four

• Six

• Seven

What is the interest amount for the first payment on a $200,000 mortgage at 9% annual interest?

• $1,000.00

• $2,000.00

• $1,609.25

• $1,500.00

What is the principal reduction for the first payment if the interest is $1,500?

• $200.00

• $1,609.25

• $1,500.00

• $109.25

What is the new principal balance after the first payment?

• $200,000.00

• $199,890.75

• $198,000.00

• $199,000.00

What adjustment is made to the last payment to ensure the principal balance reaches zero?

• Decrease the monthly payment

• Increase the interest rate

• Extend the loan term

• Adjust the principal reduction

What is the final principal balance after all payments are made?

• $0.00

• $1,588.61

• $1,600.52

• $11.91