Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Connect with a community of experts ready to help you find solutions to your questions quickly and accurately. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

a $50,000 loan is to be amortized over 7 years, with annual end-of-year payments. which of these statements is correct?

Sagot :

Proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower.

Amortization is the process of gradually paying-off of debt through scheduled installments that include the component of principal and interest.

  • The amortization tables helps to keep track of amount owed and when payment is due.

  • The table also shows how much to be paid at required intervals (i.e. monthly, bi-monthly, quarterly etc)

  • As the repayment and period of payment increase, the outstanding debt keeps decreasing as well.

  • The rate of interest determines the amount of repayment to be made at each interval

Therefore, if the interest rate were lower, then, the repayment of principal would be lower as well.

Read more about this here

brainly.com/question/12256592