Finance
Which of the following correctly describes amortization in an Alaska mortgage?
APaying only interest with no reduction in principal
BThe gradual repayment of a loan through scheduled payments that include both principal and interest✓ Correct
CPaying extra principal to shorten the loan term
DThe lender's adjustment of the loan balance for property tax changes
Explanation
Amortization is the process of paying off a loan through regular installment payments. Each payment covers the interest due and reduces the outstanding principal balance, with the loan fully paid at the end of the term.
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