Terminology (Leaving Cert Mathematics): Quizzes
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Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What does amortisation refer to?
What does amortisation refer to?
Spreading loan repayment over time
In loan amortisation, what type of payments does a borrower make?
In loan amortisation, what type of payments does a borrower make?
Fixed periodic payments
What does asset amortisation involve?
What does asset amortisation involve?
Expensing intangible assets over time
What does the Principal () represent?
What does the Principal () represent?
Original amount borrowed
What does the Interest Rate () represent?
What does the Interest Rate () represent?
Cost of borrowing money
How is interest typically applied in amortisation?
How is interest typically applied in amortisation?
Periodically (monthly or annually)
What does the Loan Term () represent?
What does the Loan Term () represent?
Total number of payment periods
What is a key characteristic of Fixed Repayment ()?
What is a key characteristic of Fixed Repayment ()?
Remains same throughout loan term
What does a fixed repayment amount cover?
What does a fixed repayment amount cover?
Both principal and interest
What does an Amortisation Schedule show?
What does an Amortisation Schedule show?
Payment breakdown and balance
What is the Reducing Balance?
What is the Reducing Balance?
Outstanding loan after each payment
How does payment allocation change over time in amortisation?
How does payment allocation change over time in amortisation?
More goes to principal vs interest