Question
With amortized loans, such as a mortgage, which of the
following statements is correct?Solution
An amortized loan (or installment loan) requires borrowers to make regular periodic payments, each consisting of both interest and principal. • In the early stages of repayment, a larger portion of each installment goes towards interest, since the outstanding principal is still high. • As payments continue, the outstanding principal reduces, causing the interest component to decline. • At the same time, the principal repayment portion gradually increases, leading to faster debt reduction in later years. Therefore, in amortized loans like mortgages, the share of interest decreases over time, while the share of principal repayment increases.
Consider the following pairs:
Which of the pairs give...
Consider the following statements in regards to the Global Indian Award:
I) It is presented annually by Canada India Foundation.
II) Sudha...
When did HDFC Bank enter the credit card business, and when did it achieve the 10-million mark?
What significant climate policy did the G-7 Energy Ministers agree upon during a meeting in Turin?
Recently Union Minister for Finance and Corporate Affairs Nirmala Sitharaman dedicated to the nation, “Dharohar” - the National Museum of Cu...
To facilitate informed decision making by investors, markets regulator SEBI has decided to introduce a risk disclosure framework for individual traders ...
What was the trade deficit for India in December 2024?
How much funding did ADB provide for tourism projects in Himachal Pradesh?
Which sector leads in the number of future Unicorns in India?
What was one of the significant outcomes of Union External Affairs Minister S. Jaishankar's visit to Mauritius in July 2023?