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Suppose you observe a baby sitting in front of a mirror. You now place a dot of rouge on the baby's nose. You see the baby look at the mirror, and then he crawls around the mirror to find the baby on the other side. Your best guess is that this baby is about how old?
Amortized
The process of paying off a debt through regular payments that cover both principal and interest.
Principal Balance
The outstanding amount of a loan or mortgage that remains to be paid, not including interest.
Personal Loan
A type of unsecured loan provided by financial institutions based on the borrower’s creditworthiness without collateral.
Perpetuity
A type of annuity that continues indefinitely, often used in finance to model consistent payments or cash flows without an end date.
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