_________________ is the paying off of the principal of a loan over the life of the loan.

Question

Quizplus · Accepted Answer

Amortization is the process of paying off the loan principal over the life of the loan, typically through regular payments that include both principal and interest. Prepayment is the process of paying off a loan in full before the scheduled due date, while collaterization refers to the pledge of assets as collateral for a loan. Securitization is the process of converting a loan or other financial asset into a marketable security that can be sold to investors.

_________________ Is the Paying Off of the Principal of a Loan