Which of the Following Statements Is True of Amortization

question 24

Multiple Choice

Which of the following statements is true of amortization?

• A) With an amortized loan, a periodical 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 bigger 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.

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Definitions:

Selective Retention

The process by which individuals remember only information that supports their beliefs or opinions, often ignoring opposing evidence.

Stimulus Discrimination

Stimulus discrimination is a concept in behavioral psychology where an organism learns to respond differently to various stimuli that are similar but not identical.

Selective Identification

The process of deliberately choosing or identifying specific elements or individuals from a broader group based on predefined criteria.

Selective Intuition

Relying on gut feelings or instincts when making decisions, but only in certain situations or when considering specific factors.