Amortization Table in Excel Quiz

What is the initial mortgage amount in the example scenario?

• $240,000

• $200,000

• $160,000

• $40,000

How many total payments are made over the life of the loan?

• 120

• 240

• 360

• 480

What is the fixed monthly payment amount in the example?

• $1,800.00

• $1,700.00

• $1,500.00

• $1,609.25

Which formula is used to calculate the monthly interest amount?

• Principal - Rate - Time

• Principal x Rate x Time

• Principal + Rate + Time

• Principal / Rate / Time

What is the purpose of using absolute references in Excel formulas?

• To make the formula more complex

• To change the formula automatically

• To simplify the formula

• To keep the cell reference constant

How is the principal reduction calculated?

• Interest amount minus monthly payment

• Monthly payment minus interest amount

• Interest amount plus monthly payment

• Monthly payment plus interest amount

What is the balance of principal after the first payment?

• $199,890.75

• $200,000.00

• $198,000.00

• $201,000.00

What adjustment is made for the last payment in the amortization table?

• Subtracting the last interest amount

• Adding the previous balance and last interest

• Multiplying the last interest by two

• Dividing the last interest by two

Why might the balance of principal not reach exactly zero?

• Due to changes in interest rate

• Because of incorrect formulas

• Because of additional payments

• Due to rounding errors

What is the final balance of principal after all adjustments?

• $1,588.61

• $0.00

• $1,500.00

• $1,600.52