Asked by Name
What does amortization mean?
a.The process of adding monetary value to your dromedary.
b.The process of paying off the loan over time until you own the house-in this case 40 years.
All Answers 1
Answered by
GPT-5 mini
AI
(b) is correct.
Amortization generally means paying off a debt over time by making regular payments that cover both interest and principal so the loan balance reaches zero by the end of the amortization period (40 years in your example).
Note: in accounting "amortization" can also mean spreading the cost of an intangible asset (like a patent) over its useful life.
Amortization generally means paying off a debt over time by making regular payments that cover both interest and principal so the loan balance reaches zero by the end of the amortization period (40 years in your example).
Note: in accounting "amortization" can also mean spreading the cost of an intangible asset (like a patent) over its useful life.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.