Question

The schedule showing how monthly mortgage payments are split into principal and interest is called a(n) Group of answer choices

Answer 1

Answer:

Amortization schedule.

Explanation:

Amortization schedule is is a table that's shows periodic payments that is made on a loan. It shows the principal and the interestbthat is paid for each period till the loan is completely paid off at the end of its term.

Usually initial payments comprise more of the interest to be paid and less of principal amount (for example principal of $7 and interest of $78).

Later payments are made up of more of the principal and less of interest (for example principal of $80 and Interest of $5)

Percentage of interest component decreases while percentage component of principal increases.

Answer 2

Answer: amortization schedule

Explanation: mortgages are long-term loans (it is a type of amortized loan) that are designed to help one buy a house and in addition to repaying the principal on the loan, one also pays interest in regular installments over a period of time to the lender with the home and land serving as collateral. The amortization schedules or tables display the exact amount of principal and interest that make up each payment. It helps keep monthly payments equal while changing the relative amount of principal versus interest in each payment made. Typically, the longer the amortization schedule, the more affordable the monthly payments, however, more interests are paid in the long run due to the length of time.