Finance
What is the purpose of a mortgage amortization schedule?
ATo show how property taxes are allocated over time
BTo show how each mortgage payment is divided between principal and interest over the life of the loan✓ Correct
CTo project future property values
DTo calculate the return on investment for rental property
Explanation
An amortization schedule shows the breakdown of each mortgage payment into principal and interest over the loan term. Early payments are mostly interest; over time, a larger portion of each payment reduces principal. The loan is fully paid at the end of the term.
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