PRC-2 · Chapter 4 · Question 43 of 60
What is 'Amortization' in the context of a loan?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The gradual reduction of a debt over time through regular payments of principal and interest.
Explanation
Amortization refers to spreading out the repayment of a loan into a series of fixed installments, ensuring the balance is zero at the end of the term.
More Linear Programming MCQs
- Q45Which of the following is the standard formula for Compound Interest (A)?
- Q46A matrix with the same number of rows as columns (e.g., 2x2 or 3x3) is known as a:
- Q47A square matrix where all diagonal elements are 1 and all other elements are 0 is called a/an:
- Q48What is the condition for two matrices, A and B, to be 'conformable' for addition (A + B)?
- Q49What is the condition for two matrices, A and B, to be conformable for *multiplication* (A × B)?