Ask Question
BusinessBusiness
17 May, 00:11

Concerning a fully amortized loan, it is correct to say that it is a loan characterized by:level payments with equal portions applied to interest and principal. level payments that cover all interest charged and reduce the principal to zero by maturity. payments of varying amounts necessary to cover interest and reduce principal to zero by maturity. level payments that first pay all interest owed over the term of the loan then pay off principal.

+5
Answers (1)
  1. 17 May, 02:53
    0
    The correct answer is statement two which says that the amortized loans are those loans which have level payments that cover all interest charged and reduce the principal to zero by maturity.

    Explanation:

    Amortization can be defined as the process of paying off a loan by making regular payments in installments over a period of time.

    Amortized loans are of two types, fully amortized and partially amortized.

    In case of fully amortized loans, the payments are made according to the amortization schedule so that by the end of the set term, the loan is fully paid.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Concerning a fully amortized loan, it is correct to say that it is a loan characterized by:level payments with equal portions applied to ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Consider the information given on two products and their activity usage: Laser Printer Inkjet Printer Units produced 1,000 4,000 Setup hours 800 400 Inspection hours 500 500 Machine hours 200 1,000 Suppose that machine hours are used to assign all
Answers (1)
Write the whole number 3,010,049 in words, using commas and hyphens correctly
Answers (2)
Marketing research indicates that almost 70 percent of all women drivers who have driven a Volkswagen Cabrio prefer it to any other car.
Answers (1)
If investors are risk averse and hold only one stock, we can conclude that the required rate of return on a stock whose standard deviation is 0.21 will be greater than the required return on a stock whose standard deviation is 0.10.
Answers (1)
Atlantis Corporation has 19,000 shares of 10 %, $ 85.00 par noncumulative preferred stock outstanding and 23,000 shares of no-par common stock outstanding. At the end of the current year, the corporation declares a dividend of $ 191,000.
Answers (1)
New Questions in Business
All of the following food safety hazards can cause food to become unsafe for human consumption, except for: Biological Chemical Metaphysical Physical
Answers (1)
How have technological advancements in knitting affected fabric production? A. by increasing the use of yarn B. by increasing the cost of production C. by increasing design possibilities D. by improving fabric quality E.
Answers (1)
A country that has multinational corporations is most likely to be
Answers (2)
If a tree grew more than 3 feet during the year, how much more likely is it that the tree was at most 50 yards from the river?
Answers (2)
An HP-10BII can solve problems with up to 15 beginning-of-year cash flows when there are no consecutive equal cash flows. True / False.
Answers (1)
Home » Business » Concerning a fully amortized loan, it is correct to say that it is a loan characterized by:level payments with equal portions applied to interest and principal.
Sign Up Forgot Password?