Finance
What is 'amortization' in real estate finance?
AThe process of increasing the principal balance over time
BThe gradual repayment of a loan through scheduled payments of principal and interest✓ Correct
CThe cost of refinancing a mortgage
DThe depreciation of a property's value
Explanation
Amortization is the process of gradually paying off a loan through regular installments that include both principal and interest. Early payments are mostly interest; later payments increasingly reduce principal.
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