An Amortization Schedule Shows All but the

question 80

Multiple Choice

An amortization schedule shows all but the

• A) principal portion of the payment.
• B) interest portion of the payment.
• C) increase in market value.
• D) beginning and ending balances.

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Definitions:

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a financial instrument.

Rate of Return

The capital gain or loss realized on an investment over an allocated period, defined as a percentage of the investment’s preliminary cost.

Per Month

A time frame reference indicating occurrences or measurements within a calendar month.

Effective Annual Rate

A financial metric that represents the equivalent annual interest rate taking compounding into account, thus providing a more accurate measure of interest earned or paid over a year.