What is amortization?
Answer Posted / sathya
suppose if i take 1000rs as loan form a bank and will pay
200 every month then after the first month my principal
value will be reduced and will become 800.Then i will have
to pay interest for only that reduced value.So amoritsation
refers to decrease in the principal value over a period of
time.
| Is This Answer Correct ? | 4 Yes | 1 No |
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