Finance
What is 'amortization' in the context of a South Carolina home mortgage?
AThe process of paying off a loan through regular payments of principal and interest✓ Correct
BThe increase in property value over time
CThe reduction in property value due to depreciation
DThe calculation of annual property taxes
Explanation
Amortization is the gradual repayment of a loan through regular periodic payments that cover both principal and interest. Over time, the proportion of each payment going to principal increases while interest decreases.
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