Finance
What does 'amortization' mean in the context of an Idaho mortgage?
AThe process of depreciating the building value
BThe gradual repayment of a loan through scheduled payments of principal and interest✓ Correct
CThe calculation of property taxes over time
DThe adjustment of an ARM's interest rate
Explanation
Amortization is the systematic repayment of a loan over time through regular installment payments that cover both interest and principal. Early payments are mostly interest; later payments are mostly principal.
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