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:

R. H. Whittaker

A prominent ecologist who proposed a five-kingdom classification system for living organisms based on cellular structure and mode of nutrition.

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The unique combination of chemical compounds, including proteins, lipids, carbohydrates, and nucleic acids, that constitutes a living organism.

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The organization of all the components of a cell, including its membrane, cytoplasm, and genetic material, crucial for its functions.