Amortisation Tables (VCE SSCE General Mathematics): Quizzes
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Practise the questions
10 questions from this quiz
What does an amortisation table show for each payment?
What does an amortisation table show for each payment?
Payment, interest, principal change, balance
What is the critical order for calculating loan payment allocations?
What is the critical order for calculating loan payment allocations?
Interest first, principal reduction, balance
What does row 0 represent in an amortisation table?
What does row 0 represent in an amortisation table?
Initial amount before any payments made
A 1000 USD loan at 12% yearly, monthly payments. What is the first month's interest?
A 1000 USD loan at 12% yearly, monthly payments. What is the first month's interest?
10 USD
How do interest charges change over time for a reducing balance loan?
How do interest charges change over time for a reducing balance loan?
Interest decreases as balance decreases
What is an annuity in amortisation terms?
What is an annuity in amortisation terms?
Regular payments that reduce a lump sum
If interest is 60 USD on a 12000 USD balance, what is the monthly rate?
If interest is 60 USD on a 12000 USD balance, what is the monthly rate?
0.5% per month
For investments with additions, how is principal increase calculated?
For investments with additions, how is principal increase calculated?
Interest + Payment
In compound interest investments with additions, what happens to the balance?
In compound interest investments with additions, what happens to the balance?
Balance increases with each payment
If payment is 2700 USD and interest is 200 USD, what is principal reduction?
If payment is 2700 USD and interest is 200 USD, what is principal reduction?
2500 USD