What Is the Term Used to Describe the Reduction of the Balance

question 54

Multiple Choice

What is the term used to describe the reduction of the balance owed on a loan with each payment made over a period of time?

• A)a buy-down.
• B)shared-appreciation.
• C)prepaid interest.
• D)amortization.
• E)a rate cap.

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Definitions:

Reasonable Means

Utilizing practical and rational methods or measures when performing tasks or solving problems, aiming for effectiveness with efficiency.

Mode of Communication

The method or process by which information is conveyed between individuals or groups, such as verbal, written, or non-verbal communication.

Mailbox Rule

is a legal principle that an offer, acceptance, or any other form of legal communication is considered effective once it is dispatched, not when it is received.

Rebate

A partial refund given to someone who has paid too much for tax, rent, or a utility.