Which ONE of the Following Statements Is True About Amortisation

question 61

Multiple Choice

Which ONE of the following statements is true about amortisation?

• A) Amortisation refers to the way the borrowed amount (principal) is paid down over the life of the loan.
• B) With an amortised loan, each loan payment contains some payment of principal and an interest payment.
• C) A loan amortisation schedule is just a table that shows the loan balance at the beginning and end of each period, the payment made during that period, and how much of that payment represents interest and how much represents repayment of principal.
• D) All of the above are true.

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Definitions:

Beneficial

Having a positive or advantageous effect; something that promotes well-being.

Anger

A strong feeling of annoyance, displeasure, or hostility.

Optimism

The general tendency to anticipate favorable outcomes or possess a hopeful outlook on life.

Happiness

A state of well-being and contentment characterized by positive or pleasant emotions ranging from contentment to intense joy.