What is the term used to describe the reduction of the balance owed on a loan with each payment made over a period of time?
A)A buy-down
B)Shared-appreciation
C)Prepaid interest
D)Amortization
E)A rate cap

Question

Quizplus · Accepted Answer

Amortization is the process of reducing the balance of a loan over time through regular payments, which cover both principal and interest.

What Is the Term Used to Describe the Reduction of the Balance