An amortization schedule is:
A)a breakdown of the loan payment which includes the interest rate and number of years for the loan to be paid.
B)a breakdown of all fixed assets with their depreciation schedule.
C)a schedule the company has to provide the bank as part of their financial statements.
D)All of the above

Question

Quizplus · Accepted Answer

An amortization schedule is a breakdown of the loan payment which includes the interest rate and number of years for the loan to be paid. It shows the principal amount, interest rate, and the interest and principal payments made on the loan over the period of the loan term. It is used to help borrowers understand how their loan is being paid off and how much of each payment is going towards interest and principal repayment. Options B and C are incorrect as they do not accurately describe an amortization schedule.

An Amortization Schedule Is