Amortization is the paying off of debt with a ____________________ repayment schedule in regular installments over a period of time for example with a mortgage or a car loan.

A portion of each payment is for interest while the remaining amount is applied towards the __________________________ balance.

A portion of each payment is for interest while the remaining amount is applied towards the __________________________ balance.

Amortization is the paying off of debt with a ____________________ repayment schedule in regular installments over a period of time for example with a mortgage or a car loan.

Initially, a large portion of each payment is devoted to __________________________.

Amortization is made up of what two parts?

As the loan matures, larger portions go towards paying down the ___________________________.

If a friend of yours had never heard of amortization before and asked you to explain how loan payments work, what would you say?

If you have an amortized loan, your monthly payment will be______________________________.

If you have an amortized loan, your monthly payment will _______________

The installment payment on the loan is termed____________.

As a loan matures, larger portions go towards paying down the

Determine the down payment amount.

Cost of house: $179,900

Down Payment: 25% of the cost of the house

Determine the down payment amount.

Cost of house: $195,000

Down Payment: 20% of the cost of the house

Determine the down payment amount.

Cost of house: $195,000

Down Payment: 20% of the cost of the house

Determine the down payment amount.

Cost of house: $315,500

Down Payment: 30% of the cost of the house

Determine the monthly payment for the loan amount. Use the fixed-rate mortage monthly payment formula.

Cost of house: $112,000

Interest Rate: 4.5%

Term: 15 years

Determine the monthly payment for the loan amount. Use the fixed-rate mortgage monthly payment formula.

Cost of house: $248,500

Interest Rate: 4%

Term: 20 years

Determine the monthly payment for the loan amount. Use the fixed-rate mortgage monthly payment formula.

Cost of house: $248,500

Interest Rate: 4%

Term: 20 years

Determine the monthly payment for the loan amount compounded monthly. Use the Amortization formula.

Cost of house: $175,500

Interest Rate: 5%

Term: 30 years

Determine the monthly payment for the loan amount compounded monthly. Use the Amortization formula.

Cost of house: $113,650

Interest Rate: 5.85%

Term: 20 years

Determine the monthly payment for the loan amount compounded monthly. Use the Amortization formula.

Cost of house: $248,500

Interest Rate: 4%

Term: 20 years

Determine the monthly payment for the loan amount compounded monthly. Use the Amortization formula.

Cost of house: $169,900

Interest Rate: 5.5%

Term: 20 years

Determine the monthly payment for the loan amount compounded monthly. Use the Amortization formula.

Cost of house: $112,000

Interest Rate: 4.5%

Term: 15 years