PRC-2 · Chapter 2 · Question 39 of 45
The process of systematically paying off a debt (like a mortgage) with regular payments over time is called:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Amortization
Explanation
An amortization schedule shows how each payment is split between interest and principal reduction.
More Coordinate System and Its Application MCQs
- Q41What is 'Depreciation' in a financial context?
- Q42An investment produces Rs. 5,000 every year forever. This type of cash flow is called a/an:
- Q43In the 'Reducing Balance' method of depreciation, more depreciation is charged in:
- Q44What is the standard formula for the Future Value of an Ordinary Annuity (FVAn)?
- Q45A 'Sinking Fund' is established primarily to: