Finance
Which of the following best describes amortization?
AThe gradual payoff of a loan through regular principal and interest payments✓ Correct
BThe process of calculating property depreciation
CThe lender's fee for originating the loan
DThe adjustment of an ARM rate at each reset date
Explanation
Amortization is the process of gradually paying off a loan through regular installment payments that cover both principal and interest, so the loan is fully paid off by the end of the loan term.
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