Amortization Flashcards
1
Q
What is amortization?
A
Gradual reduction of a loan debt through periodic installment payment of principal and interest.
2
Q
What is principle interest?
A
Principle = amount that is loaned to you
Interest = the amount that you are paying for the right to borrow that money.
3
Q
What is a fully amortized loan?
A
A loan that has been completely paid off at the end of the loan term.
4
Q
What is a negative amortization?
A
Need help
5
Q
What is straight note
A
Referring to a loan where you are just paying the interest with the principal balance due in one lump sum at the end of the loan term.
