All of the Following Statements Are TRUE About Amortization Schedules

question 80

Multiple Choice

All of the following statements are TRUE about amortization schedules EXCEPT:

• A)All interest and principal paid should equal the sum of all the payments made.
• B)The final remaining balance value in your table should be zero.
• C)A given periodic payment will equal the sum of the interest payment (IPMT)and the principal payment (PPMT).
• D)The sum of the principal payments (PPMT)will always equal the loan amount. If you add interest it will be the total amount paid over the course of the loan term, both in interest and principal.

---

Definitions:

Major Producer

An entity or individual that significantly contributes to the supply of a particular good or service in the market.

Revenue

The income that a government, organization, or business receives from its activities, often used to fund operations.

Olaudah Equiano

An African writer and abolitionist who wrote an autobiography detailing his experiences as a slave and a free man, which became influential in the abolition movement.