Which of the Following Statements Is True of Amortization

question 7

Multiple Choice

Which of the following statements is true of amortization?

• A) With an amortized loan, a periodic payment of principal portion gradually decreases over a period.
• B) Amortization schedule represents only the interest portion of the loan.
• C) With an amortized loan, a larger proportion of each month's payment goes toward interest in the early periods.
• D) The computation of loan amortization is wholly based on the computation of simple interest.

---

Definitions:

Affective Learning Domain

An area of learning that involves the education of emotions, attitudes, and values.

Attitudes

Attitudes are the psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Values

Principles or standards of behavior that are considered important or beneficial in life, guiding the way individuals act and make decisions.

Learner Assessment

The process of evaluating the knowledge, skills, attitudes, and educational progress of students or trainees.