Question
Which type of amortization is most commonly used in the real world for mortgages and car loans?
Multiple choice question.
Fixed payment
Fixed principal
Variable period
Fixed interest
Multiple choice question.
Fixed payment
Fixed principal
Variable period
Fixed interest
Answers
GPT-4o mini
The most commonly used type of amortization for mortgages and car loans is **Fixed payment** amortization. This means that the borrower makes equal payments over the loan term, which includes both principal and interest.