Evaluate the Following

question 164

Essay

Evaluate the following:

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Definitions:

Gross Monthly Income

The total amount of income earned in a month before any deductions or taxes are applied.

Compounded Monthly

The method of computing interest that includes both the original amount of money deposited or loaned and the interest that amount has earned in past months.

Amortized

The process of spreading payments over multiple periods, typically in context of a loan or mortgage, which includes both interest and principal components.

Compounded Semi-annually

Refers to the process where interest is calculated and added to the principal balance of an investment or loan twice a year.